Allocation of Carbon Emission Quotas and Legislative Enlightenment for Waterborne Transportation: A Study of 17 Provinces in China

Abstract

In order to achieve sustainable development of the socio-ecological system, allocating carbon quotas has become one of the key approaches to achieving carbon emission reduction goals. As one of the primary modes of transportation, waterborne shipping is increasingly drawing attention from the international community due to its carbon emissions. Many countries have gradually established comprehensive frameworks for carbon emission management and carbon markets. However, their carbon quota allocation systems remain imperfect. Quantitative research findings indicate the necessity of evaluating carbon quota allocation from both regional and sectoral perspectives to ensure sustainability and profitability in waterborne transportation while significantly reducing carbon emissions. Clear legal regulations are needed to define the quantity of carbon quotas. This study suggests that a hybrid allocation method should be adopted to impose quota restrictions on carbon emissions in waterborne transportation processes. Furthermore, it is imperative to emphasize the hybrid approach as the primary means of balancing between free allocation and auctioning, thereby establishing a fair quota allocation system.