TY - JOUR
T1 - Carbon emission abatement quota allocation in Chinese manufacturing industries
T2 - An integrated cooperative game data envelopment analysis approach
AU - Li, Feng
AU - Emrouznejad, Ali
AU - Yang, Guo liang
AU - Li, Yongjun
PY - 2020/8/2
Y1 - 2020/8/2
N2 - 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.
AB - 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.
KW - carbon emission allocation
KW - Chinese manufacturing industries
KW - cooperative game
KW - Data envelopment analysis
KW - nucleolus
UR - http://www.scopus.com/inward/record.url?scp=85068581079&partnerID=8YFLogxK
UR - https://www.tandfonline.com/doi/full/10.1080/01605682.2019.1609892
U2 - 10.1080/01605682.2019.1609892
DO - 10.1080/01605682.2019.1609892
M3 - Article
AN - SCOPUS:85068581079
SN - 0160-5682
VL - 71
SP - 1259
EP - 1288
JO - Journal of the Operational Research Society
JF - Journal of the Operational Research Society
IS - 8
ER -