An advanced data analytic approach for reallocating green gas emissions in cap-and-trade context

Abstract

The swift economic growth experienced by nations has exacerbated the challenge of global warming over the years. Cap-and-trade stands out as the most effective approach for managing and reducing greenhouse gas emissions. This study aims to construct a data envelopment analysis model to redistribute authorized emissions among decision-making units (DMUs). Notably, the model accounts for the intricate relationship between the production of desirable and undesirable outputs within the cap-and-trade framework. Furthermore, the model adapts the current mathematical modelling by addressing undesirable output as an inherent by-product of the desirable output. Emphasis is placed on maximizing the collective efficiency scores of all DMUs. Additionally, to confront the presence of multiple potential optimal solutions in the cap-and-trade context, the model computes the efficiency interval of DMUs. Finally, the paper showcases the model's capabilities by presenting a comprehensive case study, demonstrating its practical application and effectiveness in addressing emissions reallocation within the cap-and-trade system.

Publication DOI: https://doi.org/10.1007/s10479-024-05877-x
Divisions: College of Business and Social Sciences > Aston Business School
Aston University (General)
Additional Information: Copyright © 2024, The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature. This version of the article has been accepted for publication, after peer review and is subject to Springer Nature’s AM terms of use [https://www.springernature.com/gp/open-research/policies/accepted-manuscript-terms], but is not the Version of Record and does not reflect post-acceptance improvements, or any corrections. The Version of Record is available online at: https://doi.org/10.1007/s10479-024-05877-x
Uncontrolled Keywords: Cap-and-trade,Data envelopment analysis (DEA),Efficiency,Reallocation,Undesirable outputs
Publication ISSN: 1572-9338
Last Modified: 02 Dec 2024 09:04
Date Deposited: 08 Feb 2024 11:41
Full Text Link:
Related URLs: https://link.sp ... 479-024-05877-x (Publisher URL)
http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2024-02-28
Published Online Date: 2024-02-28
Accepted Date: 2024-01-30
Authors: Saen, Reza Farzipoor
Moghaddas, Zohreh
Azadi, Majid (ORCID Profile 0000-0002-6865-7637)

Download

[img]

Version: Accepted Version

Access Restriction: Restricted to Repository staff only until 28 February 2025.

License: ["licenses_description_other" not defined]


Export / Share Citation


Statistics

Additional statistics for this record