Research on carbon emission quota allocation scheme under "Double Carbon" target: a case study of industrial sector in Henan Province

To achieve China's "Double Carbon" target, overall carbon emissions should be effectively controlled, and carbon emission quota (CEQ) allocation is an important tool. This study develops carbon emission prediction, CEQ allocation, and scheme feasibility evaluation models based on the principles of fairness, efficiency, and economy. The purpose is to propose a suitable CEQ allocation scheme for the Industrial Sector in Henan Province (ISHP). The results show that (1) the allocation model combining the technique for order preference by similarity to ideal solution (TOPSIS) and the zero-sum gains DEA (ZSG-DEA) can trade off the fairness and efficiency principles. (2) The reallocation scheme has an environmental Gini coefficient of 0.393 (< 0.4), which maximizes efficiency while lowering the abatement costs by 126.268 billion yuan, making it an ideal scheme that considers multiple principles. (3) CEQ should be reduced in 7 subsectors of ISHP while increasing in 33 others. Carbon emissions from these 7 subsectors are high, and CEQ should be reduced in accordance with the fairness principle. Even if their abatement costs are high and CEQ rises according to the efficiency principle, the increase is much smaller than the decrease. The findings are useful for optimizing the CEQ allocation under the "Double Carbon" target.

Sustainability performance of global chemical industry based on green total factor productivity

The sustainability of the chemical industry is crucial for achieving global sustainable production. The sustainability performance of global chemical industry is influenced by many issues synergistically and has not been fully quantified. Systematic analysis from multiple perspectives, such as resource savings, economic growth, and environmental improvement, is urgently needed to support effective macro-policy decisions. This study quantifies the variation trend of the sustainability of the global chemical industry during 2004-2014 and identifies the driving forces under the framework of green total factor productivity (GTFP). Results show that most developed countries performed efficiently (with GTFP values equal to 1) in sustainable production of the chemical industry, while the least developed countries usually performed inefficiently (with GTFP values lower than 1). Notably, a polarization of sustainability in the chemical industry has been confirmed among countries with different production capacities. From 2004 to 2014, the sustainability performance of the global chemical industry has generally improved. It was mainly driven by technological progress (resulting from independent technological innovation) rather than efficiency catching-up (derived from technological learning). Furthermore, technological progress was manifested mainly as the improvement in CO₂ reduction performance and capital saving performance, while technological learning was manifested mainly as the improvement in labor saving performance. Based on the conclusions of this study, the international world is suggested to take action to strengthen international technology cooperation, and governments should make prioritized and focused policies to effectively promote the sustainability of global chemical industry.

Regional difference in global unified efficiency of China-Evidence from city-level data

As the world's most energy-consuming and carbon-emitting country, China faces enormous pressures on energy conservation and emission reduction, and improving energy efficiency is one of the most important ways to save energy and reduce emissions. Using the city-level panel data in China during 2013-2017, we apply the global non-radial directional distance function (NDDF) to estimate the global unified efficiency (GUE) of each city as well as their driving forces, and identify the change of efficiency performance. The results indicate that the average GUE changed -1.0%, 1.2%, 6.0% and 7.0% during 2013-2014, 2014-2015, 2015-2016 and 2016-2017, respectively. The more developed Central China and the relatively underdeveloped Northwest China have high GUE, while the lower GUE exists in the Northeast and North China regions with greater industrial transformation and upgrading pressures. In general, the global unified efficiency of each region increases over time.

Industrial policy, energy and environment efficiency: Evidence from Chinese firm-level data

Based on a unique micro-level dataset of 30,689 mining enterprises from 2008 to 2011, this paper uses the non-radial directional distance function (NDDF) to calculate the unified efficiency index (UEI) and energy-environmental performance index (EEI) for China's mining enterprises. The double bootstrap method is then used to test how tax incentive policies affect the UEI and EEI of China's mining enterprises. The results show that: (1) the UEI and EEI of Chinese mining enterprises first decreased and then increased over the sample period; overall, Chinese mining enterprises had low energy and environmental efficiency, especially the coal mining enterprises, private mining enterprises and mining enterprises in the central and western regions. (2) Tax incentives positively affect the energy and environmental efficiency of mining enterprises, especially the efficiency of coal mining enterprises, non-state-owned mining enterprises and mining enterprises in the central and western regions. Our results remain robust after using the propensity score matching estimator (PSM). (3) There is a positive feedback between tax incentives and energy and environmental efficiency, more efficient mining enterprises receive more government incentives. Further analysis shows that although tax incentives do not reduce the total energy consumption of enterprises, reducing the energy consumption of enterprises can improve their UEI and EEI. In addition, R&D investment, profitability and resource taxes all contribute to improving the UEI and EEI of mining enterprises.

An improved production-theoretical approach to decomposing carbon dioxide emissions

Production-theoretical decomposition analysis (PDA), built on production theory and data envelopment analysis, has been widely used to quantify the factors that drive CO₂ emission changes to support policy analysis and making. Existing PDA methods are usually linked to Shephard distance function and Malmquist productivity index. However, decomposition results associated with these methods may be biased and incomplete. The challenges with these methods mainly stem from the problems associated with underestimating disaggregated efficiencies and the infeasibility of linear programming. This paper proposes a modified PDA approach based on a non-radial directional distance function and global Malmquist-Luenberger productivity index. This new approach addresses the problems associated with conventional PDA methods. To show the usefulness of the proposed approach, we apply it to study CO₂ emissions in China and use the bootstrap method to test the statistical significance of the estimated results.

Comparisons of CO2 emission performance between secondary and service industries in Yangtze River Delta cities

To put the brakes on global climate change, China, the world's top emitter, has established ambitious CO₂ emissions reduction targets. Industry-level emissions analysis can help policymakers determine better ways to achieve mitigation targets. This study is the first to target the total-factor carbon emission performance (TCPI) of secondary and service industries. We first compile industry-level CO₂ emission inventories of 25 Yangtze River Delta cities during 2007-2016. The TCPI of secondary and service industries is then estimated by the non-radial directional distance function. We then compare the TCPI of the two industries across levels, dynamics, and inequalities using a global metafrontier approach. The results show the TCPI of the service industry (0.563 in 2016) was significantly higher than that of secondary industry (0.256 in 2016), suggesting that the service industry was more carbon-friendly. The TCPI gap between the secondary and service industries narrowed over the study period. The TCPI of secondary industry showed a promising increase during 2007-2016 with an annual growth rate of 2.30%, reflecting the positive effects of the government's reforms and environmental regulations. By contrast, the service industry saw a downward trend in TCPI, decreasing by 1.68% annually, primarily because it is a newcomer to low-carbon development. TCPI inequality in secondary industry was much larger than in the service industry, suggesting that significant heterogeneity exists in secondary industry. Therefore, policymakers should implement targeted mitigation policies for secondary industry, and place decarbonising the service industry on the agenda to reverse its decreasing TCPI.

Does energy and CO2 emissions performance of China benefit from regional integration?

Low energy and carbon efficiency and widespread market segmentation are two stylized facts of China's regional economies. This paper evaluates energy and CO₂ emissions performance using a newly developed non-radial directional distance function, and China's regional integration is investigated using a price approach. The study points to evidence that: (1) most provinces do not perform efficiently in terms of energy use and CO₂ emissions with performance gaps among regions becoming larger, indicating regional segmentation; (2) magnitude of regional integration has increased dramatically, while China's eastern provinces are less integrated in domestic side due to their convenience to international openness; (3) regional integration has significant and robust positive effects on energy and CO₂ emissions performance with over 70% of effects coming from artificial barriers, rather than geographical distance; (4) international openness is also beneficial for promoting energy and CO₂ emissions performance, but cannot substitute for regional integration because of China's specialization in energy-intensive manufacturing in the global economy. Based on the empirical findings, we suggest that central government should continue to encourage regional integration given that local governments have incentives to fragment because it is a way of promoting energy and CO₂ emissions performance and stimulating economy at the same time.