Carbon emission quota allocation of high energy consumption industries in undeveloped areas – A case study of Inner Mongolia Autonomous Region

With the approaching of the target year of carbon peak, all world countries have gradually strengthened carbon emission reduction actions. However, most of the undeveloped countries or regions do not belong to the Annex I countries in the Kyoto Protocol, and the development of carbon emission tradin...

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Main Authors: Xiufan Zhang, Decheng Fan
Format: Article
Language:English
Published: Elsevier 2022-11-01
Series:Heliyon
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2405844022025294
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author Xiufan Zhang
Decheng Fan
author_facet Xiufan Zhang
Decheng Fan
author_sort Xiufan Zhang
collection DOAJ
description With the approaching of the target year of carbon peak, all world countries have gradually strengthened carbon emission reduction actions. However, most of the undeveloped countries or regions do not belong to the Annex I countries in the Kyoto Protocol, and the development of carbon emission trading mechanisms is relatively slow. Therefore, setting emission quota standards for industries in underdeveloped regions is necessary. Considering the principles of fairness, efficiency, and sustainability, we establish a “multi-objective information entropy allocation model” (i.e., IEMMA method) for underdeveloped areas. Take China's Inner Mongolia Autonomous Region as an example, and the allocation results show that: (1) The “historical emissions”, “carbon emission intensity”, “cumulative emissions”, “energy structure”, and “energy intensity” are assigned higher weights. Such industries will carry a higher responsibility for emissions reductions, they should gradually transfer emission quotas to industries with smaller historical emissions to increase enthusiasm for reducing emissions. (2) Compared with the historical emissions allocation scheme, the IEMMA model can increase the emission limits for industries with large historical emissions. For industries with relatively small emissions, their emission quotas can be appropriately relaxed to promote the sustainable development of the industry. (3) Under the allocation scheme of the IEMMA model, the difference in the reduction of carbon emission intensity of different industries is small. Carbon emission intensity becomes a relative emission reduction indicator, which reflects the fairness of allocation while maintaining economic development. (4) The “quota gap” formed by the allocation plan of the IEMMA model is large, which is conducive to promoting the active emission reduction of high-emission enterprises. Larger “allowance gaps” are conducive to increasing the activity of the carbon trading market. In summary, the IEMMA model is conducive to achieving long-term emission reduction goals in underdeveloped regions and is more suitable for the allocation of quotas to high energy-consuming industries.
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spelling doaj.art-5d5bcad9e4e947839f90f317d79d38b42022-12-22T03:45:23ZengElsevierHeliyon2405-84402022-11-01811e11241Carbon emission quota allocation of high energy consumption industries in undeveloped areas – A case study of Inner Mongolia Autonomous RegionXiufan Zhang0Decheng Fan1School of Economics and Management, Zhejiang Sci-Tech University, Hangzhou, 310018, China; School of Economics and Management, Harbin Engineering University, Harbin, 150009, China; Corresponding author at: School of Economics and Management, Zhejiang Sci-Tech University, Hangzhou, 310018, China.School of Economics and Management, Harbin Engineering University, Harbin, 150009, ChinaWith the approaching of the target year of carbon peak, all world countries have gradually strengthened carbon emission reduction actions. However, most of the undeveloped countries or regions do not belong to the Annex I countries in the Kyoto Protocol, and the development of carbon emission trading mechanisms is relatively slow. Therefore, setting emission quota standards for industries in underdeveloped regions is necessary. Considering the principles of fairness, efficiency, and sustainability, we establish a “multi-objective information entropy allocation model” (i.e., IEMMA method) for underdeveloped areas. Take China's Inner Mongolia Autonomous Region as an example, and the allocation results show that: (1) The “historical emissions”, “carbon emission intensity”, “cumulative emissions”, “energy structure”, and “energy intensity” are assigned higher weights. Such industries will carry a higher responsibility for emissions reductions, they should gradually transfer emission quotas to industries with smaller historical emissions to increase enthusiasm for reducing emissions. (2) Compared with the historical emissions allocation scheme, the IEMMA model can increase the emission limits for industries with large historical emissions. For industries with relatively small emissions, their emission quotas can be appropriately relaxed to promote the sustainable development of the industry. (3) Under the allocation scheme of the IEMMA model, the difference in the reduction of carbon emission intensity of different industries is small. Carbon emission intensity becomes a relative emission reduction indicator, which reflects the fairness of allocation while maintaining economic development. (4) The “quota gap” formed by the allocation plan of the IEMMA model is large, which is conducive to promoting the active emission reduction of high-emission enterprises. Larger “allowance gaps” are conducive to increasing the activity of the carbon trading market. In summary, the IEMMA model is conducive to achieving long-term emission reduction goals in underdeveloped regions and is more suitable for the allocation of quotas to high energy-consuming industries.http://www.sciencedirect.com/science/article/pii/S2405844022025294High-energy-consumption industryQuota allocationUndeveloped regions
spellingShingle Xiufan Zhang
Decheng Fan
Carbon emission quota allocation of high energy consumption industries in undeveloped areas – A case study of Inner Mongolia Autonomous Region
Heliyon
High-energy-consumption industry
Quota allocation
Undeveloped regions
title Carbon emission quota allocation of high energy consumption industries in undeveloped areas – A case study of Inner Mongolia Autonomous Region
title_full Carbon emission quota allocation of high energy consumption industries in undeveloped areas – A case study of Inner Mongolia Autonomous Region
title_fullStr Carbon emission quota allocation of high energy consumption industries in undeveloped areas – A case study of Inner Mongolia Autonomous Region
title_full_unstemmed Carbon emission quota allocation of high energy consumption industries in undeveloped areas – A case study of Inner Mongolia Autonomous Region
title_short Carbon emission quota allocation of high energy consumption industries in undeveloped areas – A case study of Inner Mongolia Autonomous Region
title_sort carbon emission quota allocation of high energy consumption industries in undeveloped areas a case study of inner mongolia autonomous region
topic High-energy-consumption industry
Quota allocation
Undeveloped regions
url http://www.sciencedirect.com/science/article/pii/S2405844022025294
work_keys_str_mv AT xiufanzhang carbonemissionquotaallocationofhighenergyconsumptionindustriesinundevelopedareasacasestudyofinnermongoliaautonomousregion
AT dechengfan carbonemissionquotaallocationofhighenergyconsumptionindustriesinundevelopedareasacasestudyofinnermongoliaautonomousregion