Study On The Initial Allocation Of Industrial Carbon Emission In Shandong Province

Energy-saving emission reduction is an important part of China's economic development strategy,adding a new impetus to the sustainable development of China's economy.As a major economic province,Shandong Province needs to do more for energy-saving and emission reduction.However,Energy-saving emission reduction faces a severe situation.It is difficult to accomplish emission reduction targets only by technological progress.Establishing a carbon emission market is a means that can make an effect in the short term,and market-based transactions can increase efficiency and allow more companies to join in the market equally.So it is important to build a carbon emission market in Shandong Province for Shandong Province and even the whole country.Firstly this article analyzes the carbon emissions of Shandong Province from 2005 to 2015 by comparing the emission reductions in Shandong Province with other provinces and municipalities directly under the central government and compares the changes in carbon emissions in each region with the comparison of other cities in Shandong Province.It is the foundation to allocate emission allowance.The first question that needs to be considered in setting up a carbon market is the issue of emission allowance.This paper allocates carbon emissions allowances from two perspectives:One is from the perspective of regional allocation,and ZSG-DEA is an effective method of allocation of carbon emission allowances.Therefore,Through the construction of carbon emissions as a non-desired output of ZSG-DEA,carbon emissions allowances are allocated to 17 cities in Shandong Province.By being compared with the current carbon emissions of various cities in Shandong province,the initial carbon emission allocations of the cities are obtained;The other is to allocate carbon emission allowances from the point of view of industries.The carbon emission of industrial sector is the most in Shandong Province.The allocation of industrial carbon emissions is the most important part for the effective operation of the carbon trading market.As a result,the paper uses cost-benefit analysis to build the marginal abatement cost curve of various industries,and uses mathematical methods to derive the marginal abatement cost function,in order to obtainthe conditions for minimizing the cost,and thus obtain carbon emission allowances,equilibrium transaction price for various industrial sectors under the conditions of minimizing costs.However,in the calculation process,it was found that due to the impact of factors such as emission reduction technology and industry cycles,the trade equilibrium price was too high when all industrial sectors joined in the carbon emission reduction market.So we must find another way to solve thr problem.According to the index such as the technology of the carbon emission reduction,the company that fits the condition can take part in special carbon emission transcation market.We can get some suggestions by analyzing and comparing with these special markets.The paper suggests the carbon emission transcation market should be divided into three markets according to the condition of Shandong province and the carbon emission allowances would be allocated.There are two main innovation points in this paper:Firstly,carbon emissions are allocated to various cities in Shandong Province on the basis of technical efficiency rather than carbon intensity;Secondly,it is more considerable to take "two-step" strategy to establish the carbon emission transcation market.Finally,according to the distribution results,it can be concluded that the overall carbon emission efficiency of all regions in Shandong Province is relatively high,but there are geographical differences.The carbon emission efficiency would be high through ZSG-DEA model.However,as time going by,due to environmental regulation and other factors,some industrial sectors which the efficiency of carbon emission is low often transfer from developed to undeveloped regions.This can be resolved by redistributing the "carbon" region and implementing carbon emission by regional joint governance in order to improve efficiency.Industrial sectors in Shandong province are divided into three markets:high-carbon emissions,medium-carbon emissions,and low-carbon emissions markets,so as to solve the problem that does not exist equilibrium.At the same time the regulations of carbon emission transcation market,the establishment of carbon trading funds and other supporting measures need to be taken tomaintain the normal operation of the carbon emission transaction market.From both the regional and industrial sides,we will replace old growth drivers with new ones in Shandong Province,and add impetus to the sustainable and healthy economic development of Shandong Province.