Articles Related to ZSG DEA
Carbon Emission Efficiency and Emission Permit Allocation of China’s Fire Power Industry: An Emission Permit Trading Perspective
The emissions trading system is an important tool to combat climate change, which uses the “cap and trade” principle to reduce carbon dioxide emissions. This paper first adopts production technology considering carbon emission permit trading and proposes a data envelopment analysis (DEA) model to evaluate carbon emission efficiency of Chinese fire power industry from 2013 to 2017. Further, a new zero sum gains DEA（ZSG-DEA）considering carbon emission permit trading model is proposed based on efficiency principle to adjust the initial allocation of carbon emission permits (considering fairness principle) among regional fire power industries in 2030. The new approach enables us to investigate the carbon emission efficiency and emission permit allocation problem from an emission permit trading perspective. Theoretical analysis show that organizations have higher potential in reducing carbon emissions and greater potential in improving inputs and outputs after introducing emitting permit trading. Empirical results show that the southeastern fire power industries have higher carbon emission efficiencies and permitted emission levels. Under the background of carbon emission permit trading, the allocation level of carbon emissions permit in inefficient areas is limited and given greater responsibility for reducing emissions considering fairness and efficiency principles. This could promote active carbon emissions reduction in various regions so as to realize China’s carbon emissions [1] reduction targets in a faster pace.