An Optimization Study of Provincial Carbon Emission Allowance Allocation in China Based on an Improved Dynamic Zero-Sum-Gains Slacks-Based-Measure Model

Abstract

In order to achieve its 2030 carbon emission peak target, China needs to adjust and allocate energy consumption and initial carbon emission allowances for each province in a phased and planned manner. Thus, this study applied an improved dynamic undesirable zero-sum-gains slacks-based-measure (ZSG-SBM) model to evaluate provincial CO2 emission reduction scenarios and energy allocation for 2015–2019 and calculate the optimal allocation values of carbon emission allowances for each province in 2030. The results showed that China’s allocation efficiency values for total energy exhibited rising and then declining trends during 2015–2019 and that most input–output term efficiency values had room for improvement. Furthermore, after four adjustment iterations of the improved dynamic undesirable ZSG-SBM model, the modeled China achieved optimal carbon emission efficiency for the whole country. In the final model, 19 provinces were allowed to increase their carbon emissions in 2030, while the remaining 11 provinces needed to reduce their emissions. The findings of this paper can help regulators to establish fairer and more effective policy solutions to promote regional synergistic emission reduction, achieve the national goal of peak total carbon emissions, and promote the green, coordinated, and sustainable development of China’s economy.

Linear programming and its application in analysing game theory

“…In that case, non-zero-sum game can be both competitive and non-competitive which depends on the value of the sum [7]. For those kinds of complex situations, two criteria will be used to evaluate the feasibility of the model: Firstly, calculating accuracy, for example, a simple two-player zero-sum game called colonel-bolloto game, which can be commonly applied as a metaphor for electoral competition, to attract more voters to support the voters, two different political parties will put resources or money to reach the goal [8][9], a rapid enlarge will be caused as the increase of the regiments put in the battlefield and the mountains [10], Errors will be caused if the model's calculating accuracy is not qualified. Secondly, unavoidable system Error, every model will have unavoidable calculation deviation because of the disadvantage of the system itself, system with less unavoidable deviation will be of better application.…”