Carbon emission abatement quota allocation in Chinese manufacturing industries:An integrated cooperative game data envelopment analysis approach

Abstract

The Chinese government announced to cut its carbon emissions intensity by 60%–65% from its 2005 level. To realize the national abatement commitment, a rational allocation into its subunits (i.e. industries, provinces) is eagerly needed. Centralized allocation models can maximize the overall interests, but might cause implementation difficulty and fierce resistance from individual subunits. Based on this observation, this article will address the carbon emission abatement quota allocation problem from decentralized perspective, taking the competitive and cooperative relationships simultaneously into account. To this end, this article develops an integrated cooperative game data envelopment analysis (DEA) approach. We first investigate the relative efficiency evaluation by taking flexible carbon emission abatement allocation plans into account, and then define a super-additive characteristic function for developing a cooperative game among units. To calculate the nucleolus-based allocation plan, a practical computation procedure is developed based on the constraint generation mechanism. Further, we present a two-layer way to allocate the CO2 abatement quota into different sub-industries and further different provinces in Chinese manufacturing industries. The empirical results show that five sub-industries (Processing of petroleum, coking and processing of nuclear fuel; Smelting and pressing of ferrous metals; Manufacture of non-metallic mineral products; Manufacture of raw chemical materials and chemical product; Smelting and pressing of non-ferrous metals) and two provinces (Guangdong and Shandong) will be allocated more than 10% of the total national carbon emission abatement quota.

Publication DOI: https://doi.org/10.1080/01605682.2019.1609892
Divisions: College of Business and Social Sciences > Aston Business School > Operations & Information Management
Funding Information: This research was financially supported by the Fundamental Research Funds for the Central Universities (No. JBK1901013 and JBK190916) for Feng, the National Science Foundation of China (No. 71671181) for Guoliang, the National Science Foundation of China
Uncontrolled Keywords: carbon emission allocation,Chinese manufacturing industries,cooperative game,Data envelopment analysis,nucleolus,Management Information Systems,Strategy and Management,Management Science and Operations Research,Marketing
Publication ISSN: 1476-9360
Last Modified: 30 Sep 2024 12:30
Date Deposited: 28 Aug 2020 07:16
Full Text Link:
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
https://www.tan ... 82.2019.1609892 (Publisher URL)
PURE Output Type: Article
Published Date: 2020-08-02
Published Online Date: 2019-07-05
Accepted Date: 2019-04-04
Authors: Li, Feng
Emrouznejad, Ali (ORCID Profile 0000-0001-8094-4244)
Yang, Guo liang
Li, Yongjun

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