Research On Carbon Emission Efficiency And Carbon Trading Mechanism Of The Industrial Sectors In China

Carbon trading is the effective way in energy conservation and emission reduction,and mainly includes the most key internal influence mechanism of the carbon trading market,i.e.,the carbon emission quota allocation mechanism,and the external influence mechanism,i.e.,the economic impact and emission reduction performance for carbon trading participants.Carbon emission efficiency is closely related to emission reduction potential,and the emission reduction potential can provide reference for the design of carbon trading quota allocation mechanism.The carbon emission of China’s industry accounts for more than 80%of the total in the nation,and is the important participant of the carbon trading,therefore,in order to achieve the carbon reduction goal of China,and promote the successfully implemention of China’s carbon trading polices and suatainable development,we comprehensively explore the carbon emission reduction effeiciency and potential,carbon quota allocation mechanism and the impacts on economy and emission reduction of the industrial sectors in China under the carbon trading constraint.This paper uses the DEA model to evaluate the industrial CO2 emission efficiency,emission reduction potential and profits brought by emission reduction for the 30 provinces in China,additionally,the spatial clustering among those provinces is detected in terms of the industrial CO2 emission efficiency based on the Moran’s Index method.We construct a comprehensive index combined with the subjective,objective and linear combination weighting methods to allocate carbon emission quotas among the 39 sectors of China’s industry in 2020 based on the level of 2015,and employs the input-oriented ZSG-DEA model to examine the efficiency of allocation solutions in 2020.Moreover,we utilize the DEA optimization model to estimate the change of the whole industry and the 39 industrial sectors in China on economic output and carbon emission,under the no carbon trading,the spatial trading and the spatial-temporal trading scenarios,and to confirm the impact of carbon trading on economic growth and carbon emission reduction.From the microcosmic perspective to the macroscopic perspective,this paper comprehensively explore the emission reduction efficiency,potential and mechanism of the industrial sectors in China under the carbon trading constraint,and provide effective suggestions for the industrial sectors to successfully achieve the goal of emission reduction and carbon mitigation and participate in the carbon market construction.The results indicate that,firstly,these 30 provinces are not completely efficient regarding their industrial CO2 emission efficiency,and the northwest region has the hugest industrial CO2 emission reduction potential,therefore,the central government should provide more policy support for this region.Secondly,the industrial sectors of the 30 provinces exist significant spatial clustering in light of CO2 emission efficiency,which provides important implications for government to shape regional industrial policies.Thirdly,the mitigation responsibility plays a relatively higher role than reduction capacity and potential,Production and Supply of Electric Power and Heat Power(S37)、Manufacture and Processing of Ferrous Metals(S26)、Processing of Petroleum,Coking,Processing of Nucleus Fuel(S19),Manufacture of Non-metallic Mineral Products(S25),Manufacture of Chemical Raw Material and Chemical Products(S20)and Mining and Washing of Coal(S1)six key industrial sectors are respectively allocated over 500 million tonnes of carbon emission quotas in 2020,which together account for 91.77%of the total in the industry.Fourthly,the final carbon emission quota allocation solution reflects both the equity and efficiency principles and achieves the Pareto optimal state.Finally,the carbon trading can yield 69.34 trillion yuan of potential gains and 19.22 billion tonnes of emission reduction potential,from the-view of carbon intensity,the carbon intensity respectively reduces by 80.97%,79.69%and 83.19%during the Eleventh Five-Year,Twelfth Five-Year and the Thirteenth Five-Year,and far exceeds the established carbon intensity reduction target in that time.These results provide important reference for the government in making reasonable emission reduction policies for industrial sectors and regulating the construction of carbon trading market.