Skip to main content

Advertisement

SpringerLink
Log in

Optimizing emission reduction task sharing: technology and performance perspectives

  • S.I.: Scalable Optimization and Decision Making in OR
  • Published:
Annals of Operations Research Aims and scope Submit manuscript

Abstract

One effective way to achieve emission reduction targets is to allocate overall emission reduction tasks among regions. However, existing AEP optimization models do not consider technology heterogeneity between regions. This study addresses this problem, by first incorporating a meta-frontier technique into the data envelope analysis model (DEA) to measure the level of energy conservation and emission reduction (ECER) technology of different regions in China. Then, the study proposes an optimization model for emission reduction task sharing, by integrating DEA and ECER technology. Compared with previous models, the optimization model proposed in this study considers both technology and efficiency factors. The proposed model was applied to an empirical analysis of 176 cities in China from 2012 to 2016. The empirical results show that the average comprehensive efficiency of all the sample cities is very low. This indicates there is great potential for improving the environmental performance of Chinese cities. The environmental performance results of the sample cities further verify the Kuznets hypothesis: environmental performance and economic development level follow a U-shaped curve. ECER technology levels in China's third- and fourth-tier cities have not significantly changed in recent years. There is an increased reduction in sulfur dioxide (SO2) emissions in Chinese cities, but dust emission reduction is unstable, especially in the third-tier cities. Based on these results, this article also proposes a series of policy recommendations for cities to improve ECER performance.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6
Fig. 7

Similar content being viewed by others

References

  • Al-Mulali, U., Saboori, B., & Ozturk, I. (2015). Investigating the environmental Kuznets curve hypothesis in Vietnam. Energy Policy, 76, 123–131.

    Article  Google Scholar 

  • Bian, Y., He, P., & Xu, H. (2013). Estimation of potential energy saving and carbon dioxide emission reduction in China based on an extended non-radial DEA approach. Energy Policy, 63, 962–971.

    Article  Google Scholar 

  • Chang, M. C., & Hu, J. L. (2019). A long-term meta-frontier analysis of energy and emission efficiencies between G7 and BRICS. Energy Efficiency, 12(4), 879–893.

    Article  Google Scholar 

  • Charnes, A., & Cooper, W. W. (1962). Programming with linear fractional functionals. Naval Research Logistics Quarterly, 9(3–4), 181–186.

    Article  Google Scholar 

  • Chen, J., Gao, M., Mangla, S. K., Song, M., & Wen, J. (2020). Effects of technological changes on China’s carbon emissions. Technological Forecasting and Social Change, 153, 119938.

    Article  Google Scholar 

  • Chen, Z., Yuan, X. C., Zhang, X., & Cao, Y. (2019). How will the Chinese national carbon emissions trading scheme work? The assessment of regional potential gains. Energy Policy, 137, 111095.

    Article  Google Scholar 

  • Cho, C. H., Chu, Y. P., & Yang, H. Y. (2014). An environment kuznets curve for GHG emissions: A panel cointegration analysis. Energy Sources, Part B: Economics, Planning, and Policy, 9(2), 120–129.

    Article  Google Scholar 

  • Choi, Y., Zhang, N., & Zhou, P. (2012). Efficiency and abatement costs of energy-related CO2 emissions in China: A slacks-based efficiency measure. Applied Energy, 98, 198–208.

    Article  Google Scholar 

  • Cramton, P., & Kerr, S. (2002). Tradeable carbon permit auctions: How and why to auction not grandfather. Energy Policy, 30(4), 333–345.

    Article  Google Scholar 

  • Den Elzen, M., Janssen, M., Rotmans, J., Swart, R., & De Vries, B. (1992). Allocating constrained global carbon budgets: Inter-regional and inter-generational equity for a sustainable world. International Journal of Global Energy Issues, 4(4), 287–301.

    Google Scholar 

  • Ding, T., Chen, Y., Wu, H., & Wei, Y. (2018). Centralized fixed cost and resource allocation considering technology heterogeneity: A DEA approach. Annals of Operations Research, 268(1), 497–511.

    Article  Google Scholar 

  • Dong, F., Long, R., Yu, B., Wang, Y., Li, J., Wang, Y., & Chen, H. (2018). How can China allocate CO2 reduction targets at the provincial level considering both equity and efficiency? Evidence from its Copenhagen Accord pledge. Resources, Conservation and Recycling, 130, 31–43.

    Article  Google Scholar 

  • Du, K., Lu, H., & Yu, K. (2014). Sources of the potential CO2 emission reduction in China: A nonparametric meta-frontier approach. Applied Energy, 115, 491–501.

    Article  Google Scholar 

  • Du, S., Qian, J., Liu, T., & Hu, L. (2020). Emission allowance allocation mechanism design: A low-carbon operations perspective. Annals of Operations Research, 291, 247–280.

    Article  Google Scholar 

  • Färe, R., & Grosskopf, S. (2004). New directions: Efficiency and productivity. Kluwer Academic Publishers.

    Google Scholar 

  • Fischer, C., & Fox, A. K. (2007). Output-based allocation of emissions permits for mitigating tax and trade interactions. Land Economics, 83(4), 575–599.

    Article  Google Scholar 

  • Goulder, L. H., Parry, I. W., Williams Iii, R. C., & Burtraw, D. (1999). The cost-effectiveness of alternative instruments for environmental protection in a second-best setting. Journal of Public Economics, 72(3), 329–360.

    Article  Google Scholar 

  • Guo, J., Zhao, M., Wu, X., Shi, B., & Gonzalez, E. D. S. (2021). Study on the distribution of PM emission rights in various provinces of China based on a new efficiency and equity two-objective DEA model. Ecological Economics, 183, 106956.

    Article  Google Scholar 

  • Halkos, G., & Petrou, K. N. (2019). Treating undesirable outputs in DEA: A critical review. Economic Analysis and Policy, 62, 97–104.

    Article  Google Scholar 

  • Huang, Z., Fan, H., & Shen, L. (2019). Case-based reasoning for selection of the best practices in low-carbon city development. Frontiers of Engineering Management, 6(3), 416–432.

    Article  Google Scholar 

  • Janssen, M., & Rotmans, J. (1995). Allocation of fossil CO2 emission rights quantifying cultural perspectives. Ecological Economics, 13(1), 65–79.

    Article  Google Scholar 

  • Ji, X., Sun, J., Wang, Y., & Yuan, Q. (2017). Allocation of emission permits in large data sets: A robust multi-criteria approach. Journal of Cleaner Production, 142, 894–906.

    Article  Google Scholar 

  • Knopf, B., Kowarsch, M., Lüken, M., Edenhofer, O., & Luderer, G. (2012). A global carbon market and the allocation of emission rights. In O. Edenhofer, J. Wallacher, H. Lotze-Campen, M. Reder, B. Knopf, & J. Müller (Eds.), Climate change, justice and sustainability (pp. 269–285). Dordrecht: Springer.

    Chapter  Google Scholar 

  • Korhonen, P., & Syrjänen, M. (2004). Resource allocation based on efficiency analysis. Management Science, 50(8), 1134–1144.

    Article  Google Scholar 

  • Kuosmanen, T. (2005). Weak disposability in nonparametric production analysis with undesirable outputs. American Journal of Agricultural Economics, 87(4), 1077–1082.

    Article  Google Scholar 

  • Lee, C. Y. (2019). Decentralized allocation of emission permits by Nash data envelopment analysis in the coal-fired power market. Journal of Environmental Management, 241, 353–362.

    Article  Google Scholar 

  • Li, G., Li, L., Choi, T. M., & Sethi, S. P. (2020a). Green supply chain management in Chinese firms: Innovative measures and the moderating role of quick response technology. Journal of Operations Management, 66(7–8), 958–988.

    Article  Google Scholar 

  • Li, G., Lim, M. K., & Wang, Z. (2020b). Stakeholders, green manufacturing, and practice performance: Empirical evidence from Chinese fashion businesses. Annals of Operations Research, 290, 961–982.

    Article  Google Scholar 

  • Li, G., Liu, M., Bian, Y., & Sethi, S. P. (2020c). Guarding against disruption risk by contracting under information asymmetry. Decision Sciences, 51(6), 1521–1559.

    Article  Google Scholar 

  • Li, G., Liu, W., Wang, Z., & Liu, M. (2017). An empirical examination of energy consumption, behavioral intention, and situational factors: Evidence from Beijing. Annals of Operations Research, 255(1), 507–524.

    Article  Google Scholar 

  • Li, G., Sun, J., & Wang, Z. (2019). Exploring the energy consumption rebound effect of industrial enterprises in the Beijing–Tianjin–Hebei region. Energy Efficiency, 12(4), 1007–1026.

    Article  Google Scholar 

  • Li, G., Zheng, H., Ji, X., & Li, H. (2018). Game theoretical analysis of firms’ operational low-carbon strategy under various cap-and-trade mechanisms. Journal of Cleaner Production, 197, 124–133.

    Article  Google Scholar 

  • Li, K., & Lin, B. (2015). Metafroniter energy efficiency with CO2 emissions and its convergence analysis for China. Energy Economics, 48, 230–241.

    Article  Google Scholar 

  • Lockley, A., Mi, Z., & Coffman, D. M. (2019). Geoengineering and the blockchain: Coordinating Carbon Dioxide Removal and Solar Radiation Management to tackle future emissions. Frontiers of Engineering Management, 6(1), 38–51.

    Article  Google Scholar 

  • Luzzati, T., & Orsini, M. (2009). Investigating the energy-environmental Kuznets curve. Energy, 34(3), 291–300.

    Article  Google Scholar 

  • Mahdiloo, M., Ngwenyama, O., Scheepers, R., & Tamaddoni, A. (2018). Managing emissions allowances of electricity producers to maximize CO2 abatement: DEA models for analyzing emissions and allocating emissions allowances. International Journal of Production Economics, 205, 244–255.

    Article  Google Scholar 

  • Mangla, S. K., Raut, R., Narwane, V. S., & Zhang, Z. J. (2021). Mediating effect of big data analytics on project performance of small and medium enterprises. Journal of Enterprise Information Management, 34(1), 168–198.

    Article  Google Scholar 

  • Neuhoff, K., Martinez, K. K., & Sato, M. (2006). Allocation, incentives and distortions: The impact of EU ETS emissions allowance allocations to the electricity sector. Climate Policy, 6(1), 73–91.

    Article  Google Scholar 

  • Pei, J., Liu, X., Fan, W., Pardalos, P. M., & Lu, S. (2019). A hybrid BA-VNS algorithm for coordinated serial-batching scheduling with deteriorating jobs, financial budget, and resource constraint in multiple manufacturers. Omega, 82, 55–69.

    Article  Google Scholar 

  • Pei, J., Motaei, A., & Momčilović, P. (2020). A note on a limit interchange for many-server queues. Operations Research Letters, 48, 147–151.

    Article  Google Scholar 

  • Rana, N. P., Luthra, S., Mangla, S. K., Islam, R., Roderick, S., & Dwivedi, Y. K. (2019). Barriers to the development of smart cities in Indian context. Information Systems Frontiers, 21(3), 503–525.

    Article  Google Scholar 

  • Song, M., Chen, Y., & An, Q. (2018b). Spatial econometric analysis of factors influencing regional energy efficiency in China. Environmental Science and Pollution Research, 25(14), 13745–13759.

    Article  Google Scholar 

  • Song, M., Peng, J., Wang, J., & Zhao, J. (2018c). Environmental efficiency and economic growth of China: A Ray slack-based model analysis. European Journal of Operational Research, 269(1), 51–63.

    Article  Google Scholar 

  • Song, X., Xiang, T., Mo, J., & Liu, C. (2018a). Two-leveled allocation mechanism based on regional comparison in China’s power sector. Energy Sources, Part B: Economics, Planning, and Policy, 13(4), 211–217.

    Article  Google Scholar 

  • Sun, J., Fu, Y., Ji, X., & Zhong, R. Y. (2017). Allocation of emission permits using DEA-game-theoretic model. Operational Research, 17(3), 867–884.

    Article  Google Scholar 

  • Sun, J., & Li, G. (2020). Designing a double auction mechanism for the re-allocation of emission permits. Annals of Operations Research, 291, 847–874.

    Article  Google Scholar 

  • Sun, J., Li, G., & Wang, Z. (2018b). Optimizing China’s energy consumption structure under energy and carbon constraints. Structural Change and Economic Dynamics, 47, 57–72.

    Article  Google Scholar 

  • Sun, J., Li, G., & Wang, Z. (2019). Technology heterogeneity and efficiency of China’s circular economic systems: A game meta-frontier DEA approach. Resources, Conservation and Recycling, 146, 337–347.

    Article  Google Scholar 

  • Sun, J., Wang, Z., & Li, G. (2018a). Measuring emission-reduction and energy-conservation efficiency of Chinese cities considering management and technology heterogeneity. Journal of Cleaner Production, 175, 561–571.

    Article  Google Scholar 

  • Sun, J., Wu, J., Liang, L., Zhong, R. Y., & Huang, G. Q. (2014). Allocation of emission permits using DEA: Centralised and individual points of view. International Journal of Production Research, 52(2), 419–435.

    Article  Google Scholar 

  • Wang, K., Wei, Y. M., & Zhang, X. (2013). Energy and emissions efficiency patterns of Chinese regions: A multi-directional efficiency analysis. Applied Energy, 104, 105–116.

    Article  Google Scholar 

  • Wang, Q., Su, B., Sun, J., Zhou, P., & Zhou, D. (2015). Measurement and decomposition of energy-saving and emissions reduction performance in Chinese cities. Applied Energy, 151, 85–92.

    Article  Google Scholar 

  • Wu, H., Zhang, D., Chen, B., & Yang, M. (2018). Allocation of emission permits based on DEA and production stability. INFOR: Information Systems and Operational Research, 56(1), 82–91.

    Google Scholar 

  • Wu, J., Chu, J. F., & Liang, L. (2016b). Target setting and allocation of carbon emissions abatement based on DEA and closest target: An application to 20 APEC economies. Natural Hazards, 84(1), 279–296.

    Article  Google Scholar 

  • Wu, J., Huang, D., Zhou, Z., & Zhu, Q. (2020). The regional green growth and sustainable development of China in the presence of sustainable resources recovered from pollutions. Annals of Operations Research, 290, 27–45.

    Article  Google Scholar 

  • Wu, J., Lv, L., Sun, J., & Ji, X. (2015). A comprehensive analysis of China’s regional energy saving and emission reduction efficiency: From production and treatment perspectives. Energy Policy, 84, 166–176.

    Article  Google Scholar 

  • Wu, J., Xiong, B., An, Q., Sun, J., & Wu, H. (2017). Total-factor energy efficiency evaluation of Chinese industry by using two-stage DEA model with shared inputs. Annals of Operations Research, 255(1), 257–276.

    Article  Google Scholar 

  • Wu, J., Zhu, Q., Chu, J., An, Q., & Liang, L. (2016a). A DEA-based approach for allocation of emission reduction tasks. International Journal of Production Research, 54(18), 5618–5633.

    Article  Google Scholar 

  • Yadav, G., Mangla, S. K., Luthra, S., & Rai, D. P. (2019). Developing a sustainable smart city framework for developing economies: An Indian context. Sustainable Cities and Society, 47, 101462.

    Article  Google Scholar 

  • Yang, H., He, J., & Chen, S. (2015). The fragility of the Environmental Kuznets Curve: Revisiting the hypothesis with Chinese data via an “Extreme Bound Analysis.” Ecological Economics, 109, 41–58.

    Article  Google Scholar 

  • Yang, M., An, Q., Ding, T., Yin, P., & Liang, L. (2019). Carbon emission allocation in China based on gradually efficiency improvement and emission reduction planning principle. Annals of Operations Research, 278(1–2), 123–139.

    Article  Google Scholar 

  • Yang, M., Li, Y., Chen, Y., & Liang, L. (2014). An equilibrium efficiency frontier data envelopment analysis approach for evaluating decision-making units with fixed-sum outputs. European Journal of Operational Research, 239(2), 479–489.

    Article  Google Scholar 

  • Yu, X., Jin, L., Wang, Q., & Zhou, D. (2019). Optimal path for controlling pollution emissions in the Chinese electric power industry considering technological heterogeneity. Environmental Science and Pollution Research, 26(11), 11087–11099.

    Article  Google Scholar 

  • Zhou, P., Sun, Z. R., & Zhou, D. Q. (2014). Optimal path for controlling CO2 emissions in China: A perspective of efficiency analysis. Energy Economics, 45, 99–110.

    Article  Google Scholar 

Download references

Acknowledgements

The authors sincerely thank the editors and anonymous reviewers for their constructive comments and suggestions. This research is partially supported by the National Natural Science Foundation of China under the grant nos. 71871153, 71971027, 91746110 and 71521002; National Key Research and Development Project of China under the grant no. 2018YFB1701802; Beijing Philosophy and Social Science Foundation under the grant no.19JDGLB017; the Special Items Fund of Beijing Municipal Commission of Education; the sponsorship of the Tang Scholar of Soochow University.

Author information

Authors and Affiliations

  1. Business School and Dongwu Think Tank, Soochow University, Suzhou, China

    Jiasen Sun

  2. School of Management and Economics, Beijing Institute of Technology, Beijing, China

    Guo Li

  3. Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing, China

    Guo Li

  4. Sustainable Development Research Institute for Economy and Society of Beijing, Beijing, China

    Guo Li

Authors
  1. Jiasen Sun
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Guo Li
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Guo Li.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Sun, J., Li, G. Optimizing emission reduction task sharing: technology and performance perspectives. Ann Oper Res 316, 581–602 (2022). https://doi.org/10.1007/s10479-021-04273-z

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10479-021-04273-z

Keywords

Search

Navigation