Forecasting the Allocative Efficiency of Carbon Emission Allowance Financial Assets in China at the Provincial Level in 2020

Shihong Zeng; Yan Xu; Liming Wang; Jiuying Chen; Qirong Li

LAPSE

Living Archive for Process Systems Engineering

LAPSE:2018.1030

Published Article

LAPSE:2018.1030

Forecasting the Allocative Efficiency of Carbon Emission Allowance Financial Assets in China at the Provincial Level in 2020

Shihong Zeng, Yan Xu, Liming Wang, Jiuying Chen, Qirong Li

November 27, 2018

As the result of climate change and deteriorating global environmental quality, nations are under pressure to reduce their emissions of greenhouse gases per unit of GDP. China has announced that it is aiming not only to reduce carbon emission per unit of GDP, but also to consume increased amounts of non-fossil energy. The carbon emission allowance is a new type of financial asset in each Chinese province and city that also affects individual firms. This paper attempts to examine the allocative efficiency of carbon emission reduction and non-fossil energy consumption by employing a zero sum gains data envelopment analysis (ZSG-DEA) model, given the premise of fixed CO₂ emissions as well as non-fossil energy consumption. In making its forecasts, the paper optimizes allocative efficiency in 2020 using 2010 economic and carbon emission data from 30 provinces and cities across China as its baseline. An efficient allocation scheme is achieved for all the provinces and cities using the ZSG-DEA model through five iterative calculations.

Record ID

LAPSE:2018.1030

Keywords

carbon emission allowance, efficiency, iteration, non-fossil fuels, zero sum gains data envelopment analysis (ZSG-DEA)

Subject

Energy Policy

Suggested Citation

Zeng S, Xu Y, Wang L, Chen J, Li Q. Forecasting the Allocative Efficiency of Carbon Emission Allowance Financial Assets in China at the Provincial Level in 2020. (2018). LAPSE:2018.1030

Author Affiliations

Zeng S: Economics & Management School, Beijing University of Technology, Beijing 100124, China; Finance and Economics Development Research Center, Economic Management School, Beijing University of Technology, Beijing 100124, China
Xu Y: Economics & Management School, Beijing University of Technology, Beijing 100124, China; Changping North Seven Branches, Beijing Branch, Agricultural Bank of China Co., LTD., Beijing 102209, China; Finance and Economics Development Research Center, Economi
Wang L: Economics & Management School, Beijing University of Technology, Beijing 100124, China; Finance and Economics Development Research Center, Economic Management School, Beijing University of Technology, Beijing 100124, China; Irish Institute for Chinese Stu
Chen J: Economics & Management School, Beijing University of Technology, Beijing 100124, China; Finance and Economics Development Research Center, Economic Management School, Beijing University of Technology, Beijing 100124, China
Li Q: Economics & Management School, Beijing University of Technology, Beijing 100124, China
[Login] to see author email addresses.

Journal Name

Energies

Volume

9

Issue

5

Article Number

E329

Year

2016

Publication Date

2016-05-04