Centralized DEA-based reallocation of emission permits under cap and trade regulation

Momeni, Ehsan; Lotfı, Farhad Hosseinzadeh; Saen, Reza Farzipoor; Najafi, Esmaeil

doi:10.1016/j.jclepro.2019.06.194

Cited by 24 publications

(7 citation statements)

References 39 publications

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“…In consideration of the previous literature [39,40], the emission cost is quadratic in the carbon emission reduction level. 1 2 ke 2 efforts are paid to achieve carbon emission trading cost reductions.…”

Section: Model Preparationmentioning

confidence: 99%

“…Assumption 3. The manufacturer is capital-constrained, and all of the investment of carbon emission reduction technology comes from external financing and the loan capital, and financing cost 1 2 ke 2 1 þ r ð Þ has to be paid at the end of the financing cycle. This paper takes no account of the financing risks and credit problems and considers that the manufacturer can obtain enough financing for technical improvement in production and can obtain enough funds for the payment of the principal and interest at the end of the sales cycle.…”

Section: Model Preparationmentioning

confidence: 99%

See 1 more Smart Citation

Financing Strategy of Low-Carbon Supply Chain with Capital Constraint under Cap-and-Trade Regulation

Lü¹,

Ming²,

Khan³

et al. 2020

Computers, Materials &Amp; Continua

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Cap-and-trade regulation provides incentives for manufacturers to reduce carbon emissions, but manufacturers' insufficient capital can disrupt the implementation of low-carbon emission reduction technologies. To alleviate capital constraints, manufacturers can adopt external financing for low-carbon emission reduction investments. This paper studies the independent financing and financing cooperation behavior in a supply chain in which the manufacturer and retailer first implement low-carbon emission reduction technologies and then organize production and sales in accordance with wholesale price contracts. Through comparing the optimal profits and low-carbon emission reduction levels under the independent financing and financing cooperation mode, we come to the following conclusions: (1) Although financing interest increases the cost of the supply chain, manufacturers prefer to invest in reducing carbon emissions rather than buying carbon quotas. (2) When financing independently, a decentralized decision-making mode (MD) is the best choice for manufacturers. (3) In cooperative financing, when the supply chain adopts a decentralized decision-making mode (SD) in which the retailer determines the financing cost-sharing ratio according to their optimal profit, the profits of the supply chain and its members are significantly improved. (4) When manufacturers and retailers adopt a centralized decision-making model (SC) in cooperative financing, they jointly determine the financing cost-sharing ratio and the level of low-carbon emission reduction. If the financing cost-sharing ratio meets a certain threshold range, the profits of manufacturers and retailers achieve Pareto improvement, indicating that this cooperative financing model is effective.

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Section: Model Preparationmentioning

confidence: 99%

Section: Model Preparationmentioning

confidence: 99%

Financing Strategy of Low-Carbon Supply Chain with Capital Constraint under Cap-and-Trade Regulation

Lü¹,

Ming²,

Khan³

et al. 2020

Computers, Materials &Amp; Continua

View full text Add to dashboard Cite

show abstract

“…The construction of the allocation index system mainly includes allocation principles and allocation indexes; scholars mainly focus on the principles of fairness and efficiency, as well as the dynamic coupling between the two. The principle of fairness embodies the emission reduction responsibility and emission reduction capability, which mainly cover the indicators of population size [1], GDP [26], and historical cumulative carbon emissions [3], while the principle of efficiency embodies the emission reduction potential, such as carbon emission intensity [27,28], energy structure [29], and research and development capability [1], among other indicators. With the deepening of scientific assertions such as "clear waters and green mountains are invaluable assets" and "common prosperity," the principle of sustainability has gradually attracted scholars' attention, including indicators such as natural carbon sinks and urbanization rate.…”

Section: Introductionmentioning

confidence: 99%

Strategic Allocation of Building Carbon Emission Rights Within Urban Frameworks: A Case Study of Henan Province Under China’s Dual Carbon Objectives

Lin

2023

JUDM

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The advent of China's "dual carbon" objectives necessitates stringent carbon emission reductions across all sectors, notably within the construction industry, which accounts for a significant proportion of the nation's emissions. This study presents a comprehensive examination of the allocation of building carbon emission rights, underpinned by an index system specifically designed for the construction sector, to adhere to the overarching goals of carbon neutrality. Ten refined indicators were developed, encapsulating principles of fairness, efficiency, and sustainability, including metrics such as construction stock and the value added by the construction industry. Employing a methodological framework that integrates a centralized Data Envelopment Analysis (DEA) approach, the entropy method, and k-means clustering, this research delineates an effective strategy for the allocation of carbon emission quotas. The initial allocation for Henan Province in 2023 revealed a geographical variance, characterized by higher quotas in the west compared to the east, with Zhengzhou City allocated 16.53 Mt of carbon emissions-3.59 times greater than that allocated to Zhoukou City, the municipality receiving the lowest quota. Subsequent optimization and adjustment led to the identification that, out of eighteen cities and municipalities, ten require no immediate modification to their carbon emission rights. Meanwhile, four cities were found to have a surplus, and four faced a deficit. The findings not only offer actionable insights for the implementation of urban-level carbon reduction strategies but also enhance the discourse on the allocation of building carbon emission rights, thereby contributing to the broader aim of achieving carbon neutrality. The refined approach and empirical demonstration within Henan Province serve as a pivotal reference for similar endeavors in other regions, emphasizing the necessity for tailored, data-driven allocation strategies that account for local economic activities and construction practices.

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“…The applications of DEA in different parts of industries are growing rapidly, and DEA has been proven as an excellent nonparametric performance analysis technique in the field of management and economic. See, for instance, Emrouznejad et al (2008), Wu et al (2015), Toloo and Jalili (2016), Chu et al (2016), Zhang et al (2019) and Momeni et al (2019).…”

Section: Introductionmentioning

confidence: 99%

Performance measurement of gas companies with fixed-sum inputs: a DEA-based model

Amirteimoori

Amirteimoori²,

Karbasian

2020

JES

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PurposeThe paper analyzes the relative performance of provincial gas distribution companies with different types of inputs and outputs. A data envelopment analysis (DEA)-based model is developed to construct an equilibrium efficient frontier in the presence of multi-type input/output variables.Design/methodology/approachA DEA-based model is developed to construct an equilibrium efficient frontier in the presence of multi-type input/output variables.FindingsIt has been shown that using this single equilibrium efficient frontier, a trade-off is made between efficient and inefficient companies so as to make all companies as efficient.Originality/valueThe study analyzes the relative performance of provincial gas distribution companies with different types of inputs and outputs. A DEA-based model is developed to construct an equilibrium efficient frontier in the presence of multi-type input/output variables. It has been shown that using this single equilibrium efficient frontier, a trade-off is made between efficient and inefficient companies so as to make all companies as efficient.

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Centralized DEA-based reallocation of emission permits under cap and trade regulation

Cited by 24 publications

References 39 publications

Financing Strategy of Low-Carbon Supply Chain with Capital Constraint under Cap-and-Trade Regulation

Financing Strategy of Low-Carbon Supply Chain with Capital Constraint under Cap-and-Trade Regulation

Strategic Allocation of Building Carbon Emission Rights Within Urban Frameworks: A Case Study of Henan Province Under China’s Dual Carbon Objectives

Performance measurement of gas companies with fixed-sum inputs: a DEA-based model

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