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Sustainability 2017, 9(1), 148;

The Allocation of Carbon Intensity Reduction Target by 2020 among Industrial Sectors in China

College of Management and Economics, Tianjin University, Tianjin 300072, China
Author to whom correspondence should be addressed.
Academic Editor: Marc A. Rosen
Received: 12 October 2016 / Revised: 28 December 2016 / Accepted: 16 January 2017 / Published: 21 January 2017
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
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In order to realize the national carbon intensity reduction target, China has decided to establish a unified national carbon emissions trading market in 2017. At the initial stage, eight industrial sectors will be covered in the carbon market and the other industrial sectors will be included gradually. The aim of this paper is to study the issue of how to allocate the carbon emissions quotas among different industrial sectors fairly and effectively. We try to provide theoretical support for how to determine the coverage scope and access order of the carbon market. In this paper, we construct a comprehensive reduction index based on indicators of equity and efficiency principle. We adopt entropy method to get the objective weights of the three indicators. Then, an allocation model is developed to determine each sector’s reduction target for the year of 2020. The result shows that our allocation scheme based on entropy method is more reasonable, and our allocation method will promote the equity of carbon quotas allocation and the efficiency of carbon emissions. With consideration of China’s current economic situation and industrial background, we discuss some policy implications regarding the construction of carbon market. View Full-Text
Keywords: allocation; carbon intensity; industrial sector; equity; efficiency allocation; carbon intensity; industrial sector; equity; efficiency

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Yang, B.; Liu, C.; Su, Y.; Jing, X. The Allocation of Carbon Intensity Reduction Target by 2020 among Industrial Sectors in China. Sustainability 2017, 9, 148.

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