A Method for Allocation of Carbon Emission Quotas to Provincial-Level Industries in China Based on DEA

At present, China implements a quota-based trading mechanism to achieve carbon emission reduction, in which the allocation of quotas among different provinces is short considering influence unbalanced provincial development. Heterogeneity provincial-level three major industries, namely, agriculture, manufacturing and mining, service case point. To address this insufficiency, paper proposes novel parallel data envelopment analysis (DEA) based method for quota allocation. The models each province as decision-making unit (DMU) industries sub-decision-making units (SDMUs). A distinguished feature that it makes explicit tradeoffs between efficiency equality considerations policymakers allocating heterogeneous industries. empirical results show proposed effectively improves overall gross domestic product (GDP) potentials through reallocation while level not worse off. This work helpful long-term reduction target provides suggestions improving initial national market.