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Target setting and allocation of carbon emissions abatement based on DEA and closest target: an application to 20 APEC economies

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  • Jie Wu

    (University of Science and Technology of China)

  • Jun-Fei Chu

    (University of Science and Technology of China)

  • Liang Liang

    (University of Science and Technology of China)

Abstract

Regarded as an effective method for treating the global warming problem, carbon emissions abatement (CEA) allocation has become a hot research topic and has drawn great attention recently. However, the traditional CEA allocation methods generally set efficient targets for the decision-making units (DMUs) using the farthest targets, which neglects the DMUs’ unwillingness to maximize (minimize) some of their inputs (outputs). In addition, the total CEA level is usually subjectively determined without any consideration of the current carbon emission situations of the DMUs. To surmount these deficiencies, we incorporate data envelopment analysis and its closest target technique into the CEA allocation problem. Firstly, a two-stage approach is proposed for setting the optimal total CEA level for the DMUs. Then, another two-stage approach is given for allocating the identified optimal total CEA among the DMUs. Our approach provides more flexibility when setting new input and output targets for the DMUs in CEA allocation. Finally, the proposed approaches are applied for CEA target setting and allocation for 20 Asia-Pacific Economic Cooperation economies.

Suggested Citation

  • Jie Wu & Jun-Fei Chu & Liang Liang, 2016. "Target setting and allocation of carbon emissions abatement based on DEA and closest target: an application to 20 APEC economies," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 279-296, November.
    • Handle: RePEc:spr:nathaz:v:84:y:2016:i:1:d:10.1007_s11069-015-1973-6
    DOI: 10.1007/s11069-015-1973-6
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    3. Yanbin Li & Zhen Li & Min Wu & Feng Zhang & Gejirifu De, 2018. "Regional-Level Allocation of CO 2 Emission Permits in China: Evidence from the Boltzmann Distribution Method," Sustainability, MDPI, vol. 10(8), pages 1-16, July.
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    8. Yue Xu & Zebin Wang & Yung-Ho Chiu & Fangrong Ren, 2020. "Research on energy-saving and emissions reduction efficiency in Chinese thermal power companies," Energy & Environment, , vol. 31(5), pages 903-919, August.

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