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Title Allocation of CO2 emission quotas for industrial production in Industry 4.0: Efficiency and equity
ID_Doc 22696
Authors Liu, HW; Chen, YQ; Wu, J; Pan, YH; Song, YW
Title Allocation of CO2 emission quotas for industrial production in Industry 4.0: Efficiency and equity
Year 2024
Published
DOI 10.1016/j.cie.2024.110375
Abstract The method of carbon emission quota (CEQ) allocation based on data envelopment analysis (DEA) can allocate quotas without impacting efficiency improvements in industrial sector. A key element in effectively reducing carbon emissions is ensuring accurate efficiency measurement and equitable allocation of CEQ in the Industry 4.0 era. This paper divides industrial system into two stages: production (which more accurately reflects carbon emissions in production) and trading (which involves in the commercial system). Carbon emission efficiency in the production stage is calculated with a DEA model, with a high degree of accuracy. Given that higher efficiency values correspond with stronger capacity to bear the costs of carbon reduction, a CEQ allocation model is proposed which considers the contribution degree of efficiency. This model is applied to China's industrial production system. The results show that a CEQ allocation scheme that focuses only on the production stage is more equitable than schemes which treat the industrial system as a black box. In allocation schemes which focus only on the production stage, the central region of China is least able to bear the cost of carbon reduction and receives the most CEQ, and the opposite is true in the eastern region of China. The proposed method not only measures the carbon emission efficiency of industrial production more accurately, but also considers the balanced development of different regions when allocating carbon emission rights. The CEQ allocation scheme based on our model can confidently meet the needs of sustainable development in the era of Industry 4.0.
Author Keywords CO 2 emission quotas; Efficiency; Equity; Circular economy
Index Keywords Index Keywords
Document Type Other
Open Access Open Access
Source Science Citation Index Expanded (SCI-EXPANDED)
EID WOS:001273166500001
WoS Category Computer Science, Interdisciplinary Applications; Engineering, Industrial
Research Area Computer Science; Engineering
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