environmental efficiency evaluation of industry in china based on a new fixed sum undesirable output data envelopment analysis national natural science funds of china for innovative research groups 70821001 national natural science funds of china 70901069 71222106 71203186 research fund for the doctoral program of higher education of china 20133402110028 fundamental research funds for the central universities wk 2040150007 china scholarship council

carbon allowance allocation in the transportation industry abstract this study proposes models for projecting reductions in co 2 emissions of 10 20 30 and 40 compared to business as usual bau using a carbon allowance allocation policy and both unimodal and intermodal modes of transportation the results show that for 10 to 80 decreases in free carbon allowance the intermodal ratio increased from 1 01 to 53 44 which led to decreases in carbon emissions and demand ranging from 10 41 to 48 19 and 8 45 to 7 57 respectively when free carbon allowances are decreased the demand for intermodal systems increases accordingly these results suggest that a carbon allowance allocation policy could mitigate transportation carbon emissions with a relatively small negative impact on economic activity

total factor carbon emission performance of the chinese transportation industry a bootstrapped non radial malmquist index analysis this paper proposes a non radial malmquist co2 emission performance index nmcpi for measuring dynamic changes in total factor co2 emission performance over time this index enables the consideration of non radial slacks in the conventional malmquist co2 emission index mcpi the nmcpi is calculated based on a non radial directional distance function derived by several data envelopment analysis dea models furthermore nmcpi could be decomposed into an efficiency change ec index and technological change tc index a bootstrapping approach is conducted to introduce statistical inferences into the nmcpi and its decompositions based on the proposed indices the dynamic co2 emission performance change and its decompositions of the chinese regional transportation industry from 2002 to 2010 are investigated the empirical results demonstrate that the total factor carbon emission performance of the transportation industry as a whole decreased by 32 8 over the period and this reduction was primarily caused by technological decline

a multi criteria decision analysis model for carbon emission quota allocation in china s east coastal areas efficiency and equity abstract the allocation of carbon emission quotas is recognized as a fundamental and critical step towards the establishment of an effective nationwide carbon emissions trading cet market in china this paper aims to examine the quota allocation pertaining to china s east coastal areas these regions are pioneers in reformation and the domestic heavy emitters in this paper a multi criteria decision analysis model is proposed this model is based on the principles of efficiency and equity in order to reflect the true efficiency of carbon emissions a weighted russell direction distance model is employed three criteria namely capacity responsibility and potential are used to evaluate the degrees of equity furthermore different situations are set to evaluate the related indicators the results indicate the following 1 industrial provinces have less carbon emission quota increments 2 the yangtze river delta economic zone has notably improved energy efficiency and future quota increments correspond with the zone s current carbon emissions 3 circum bohai sea economic zone will be a major buyer of carbon emission quotas while pan pearl river delta economic zone currently receives surplus quota 4 the overall allocation of quotas converts from uneven to even as a result of gdp growth these results provide a reference for collaborative regional reductions in carbon emissions and for the construction of a cet market

statistical analysis and combination forecasting of environmental efficiency and its influential factors since china entered the wto 2002 2010 2012 abstract since china became a member of world trade organization wto its economy develops at a fast speed at the same time the environmental problem becomes more and more serious and increasingly affects economic development studying the factors that influence environmental efficiency has become an essential point in dealing with the relationship between economy and environment considering the differences in space and economic development among different districts this paper discusses the quantitative relationship among exports figure imports figure gdp per capita industrialization level fiscal decentralization and environmental efficiency of each chinese province by using statistical analysis furthermore this paper discusses differences among each district s influential factors from the perspective of spatial economics and makes combination forecast on the trend of environmental efficiency it also shows that the environmental efficiency of chinese provinces is generally at a low level in addition as the economic statuses of different provinces vary and the factors that influence environmental efficiency in different provinces also have significant differences each province should take certain measures to design the environmental protection policy in line with its local circumstance

resource allocation based on efficiency analysis the purpose of this paper is to develop an approach to a resource allocation problem that typically appears in organizations with a centralized decision making environment for example supermarket chains banks and universities the central unit is assumed to be interested in maximizing the total amount of outputs produced by the individual units by allocating available resources to them we will develop an interactive formal approach based on data envelopment analysis dea and multiple objective linear programming molp to find the most preferred allocation plan the units are assumed to be able to modify their production in the current production possibility set within certain assumptions various assumptions are considered concerning returns to scale and the ability of each unit to modify its production plan numerical examples are used to illustrate the approach

ecological modernization in the electrical utility industry an application of a bads goods dea model of ecological and technical efficiency abstract newly developed data envelopment analysis techniques permit simultaneous consideration of good and bad outputs in evaluating efficiency we use these techniques to determine joint ecological and technical efficiencies of the 437 largest fossil fueled electricity generating plants in the united states utilizing the epa s e grid and clean air markets databases and drawing on ecological modernization theory we evaluate whether innovations in organizational practices and technological solutions help achieve joint technical and environmental performance efficiencies

an equilibrium efficiency frontier data envelopment analysis approach for evaluating decision making units with fixed sum outputs abstract based on the minimal reduction strategy yang et al 2011 developed a fixed sum output data envelopment analysis fsodea approach to evaluate the performance of decision making units dmus with fixed sum outputs however in terms of such a strategy all dmus compete over fixed sum outputs with no memory that will result in differing efficient frontiers evaluations to address the problem in this study we propose an equilibrium efficiency frontier data envelopment analysis eefdea approach by which all dmus with fixed sum outputs can be evaluated based on a common platform or equilibrium efficient frontier the proposed approach can be divided into two stages stage 1 constructs a common evaluation platform via two strategies an extended minimal adjustment strategy and an equilibrium competition strategy the former ensures that original efficient dmus are still efficient guaranteeing the existence of a common evaluation platform the latter makes all dmus achieve a common equilibrium efficient frontier then based on the common equilibrium efficient frontier stage 2 evaluates all dmus with their original inputs and outputs finally we illustrate the proposed approach by using two numerical examples

harmonization of carbon taxes in international climate agreements the use of some kind of carbon tax is often proposed as part of an international climate policy one possibility could be an international climate agreement requiring a harmonization of domestic carbon taxes it is shown that there are several practical difficulties with such an agreement and that it therefore is unlikely that co2 emissions will be allocated efficiently between countries with this type of agreement alternative types of agreements include an international carbon tax in which the governments of the participating countries pay a tax in proportion to their co2 emissions to an international agency a very similar arrangement would be to introduce a system of emission permits which are internationally tradeable between governments under quite general conditions agreements of these two types can be designed so that they are both efficient and satisfy whatever distributional objectives one might have under both of these systems the choice of domestic policies could be left to the individual countries a domestic carbon tax is an obvious policy response from a country participating in an agreement of this type

what stirpat tells about effects of population and affluence on the environment abstract in the literature on the application of stirpat to environmental impacts of population and affluence the parameter estimates differ from study to study one example is the effect of population size on co 2 emissions which is concluded to be very close to 1 in some studies e g york et al 2003 while far from 1 in others e g shi 2003 what can explain these differences in results in the present paper i offer an alternative model equivalent to stirpat which explicitly specifies the different role of technology t in stirpat from ipat by the alternative model i conclude that different functional forms of stirpat can be one explanation for the difference among estimates in the studies on environmental impacts of population and affluence the alternative model can also help to determine which factors to be added in stirpat

some models for estimating technical and scale inefficiencies in data envelopment analysis in management contexts mathematical programming is usually used to evaluate a collection of possible alternative courses of action en route to selecting one which is best in this capacity mathematical programming serves as a planning aid to management data envelopment analysis reverses this role and employs mathematical programming to obtain ex post facto evaluations of the relative efficiency of management accomplishments however they may have been planned or executed mathematical programming is thereby extended for use as a tool for control and evaluation of past accomplishments as well as a tool to aid in planning future activities the ccr ratio form introduced by charnes cooper and rhodes as part of their data envelopment analysis approach comprehends both technical and scale inefficiencies via the optimal value of the ratio form as obtained directly from the data without requiring a priori specification of weights and or explicit delineation of assumed functional forms of relations between inputs and outputs a separation into technical and scale efficiencies is accomplished by the methods developed in this paper without altering the latter conditions for use of dea directly on observational data technical inefficiencies are identified with failures to achieve best possible output levels and or usage of excessive amounts of inputs methods for identifying and correcting the magnitudes of these inefficiencies as supplied in prior work are illustrated in the present paper a new separate variable is introduced which makes it possible to determine whether operations were conducted in regions of increasing constant or decreasing returns to scale in multiple input and multiple output situations the results are discussed and related not only to classical single output economics but also to more modern versions of economics which are identified with contestable market theories

what can we learn from the grand policy experiment lessons from so2 allowance trading stable url http links jstor org sici sici 0895 3309 28199822 2912 3a3 3c69 3awcwlft 3e2 0 co 3b2 tthe journal of economic perspectives is currently published by american economic association your use of the jstor archive indicates your acceptance of jstor s terms and conditions of use available athttp www jstor org about terms html jstor s terms and conditions of use provides in part that unless you have obtainedprior permission you may not download an entire issue of a journal or multiple copies of articles and you may use content inthe jstor archive only for your personal non commercial use please contact the publisher regarding any further use of this work publisher contact information may be obtained athttp www jstor org journals aea html each copy of any part of a jstor transmission must contain the same copyright notice that appears on the screen or printedpage of such transmission the jstor archive is a trusted digital repository providing for long term preservation and access to leading academicjournals and scholarly literature from around the world the archive is supported by libraries scholarly societies publishers and foundations it is an initiative of jstor a not for profit organization with a mission to help the scholarly community takeadvantage of advances in technology for more information regarding jstor please contact support jstor org http www jstor orgtue jun 26 16 25 17 2007

measuring ecological efficiency with data envelopment analysis dea abstract the measurement of ecological efficiency provides some important information for the companies environmental management ecological efficiency is usually measured by comparing environmental performance indicators data envelopment analysis dea shows a high potential to support such comparisons as no explicit weights are needed to aggregate the indicators in general dea assumes that inputs and outputs are goods but from an ecological perspective also bads have to be considered in the literature bads are treated in different and sometimes arbitrarily chosen ways this article aims at the systematic derivation of ecologically extended dea models starting from the assumptions of dea in production theory and activity analysis a generalisation of basic dea models is derived by incorporating a multi dimensional value function f extended preference structures can be considered by different specifications of f e g specifications for ecologically motivated applications of dea

a generalized equilibrium efficient frontier data envelopment analysis approach for evaluating dmus with fixed sum outputs the recently published equilibrium efficient frontier data envelopment analysis eefdea approach yang et al 2014 represents a step forward in evaluating decision making units dmus with fixed sum outputs when compared to prior approaches such as fsodea fixed sum outputs dea approach yang et al 2011 and zsg dea zero sum gains dea approach lins et al 2003 and so on based on the eefdea approach in this paper we proposed a generalized equilibrium efficient frontier data envelopment analysis approach geefdea which improves and strengthens the eefdea approach compared to eefdea approach this approach makes several improvements in evaluation namely that 1 it is not necessary to determine the evaluation order in advance which overcomes the limitation that different evaluation orders will lead to different results 2 the equilibrium efficient frontier can be achieved in only one step no matter how many dmus they are which greatly simplifies the procedure to reach the equilibrium efficient frontier especially when the number of dmus is large and 3 the constraint that signs of outputs adjustment of each dmu must be same all non positive or all non negative in prior approaches has been relaxed in this sense the result obtained by the proposed approach is more consistent with the demand of practical applications finally the proposed approach combined with assurance regions ar is applied to the data set of 2012 london olympic games

testing for indeterminacy an application to u s monetary policy reply this paper considers a prototypical new keynesian model in which the equilibrium is undetermined if monetary policy is passive the likelihood based estimation of dynamic equilibrium models is extended to allow for indeterminacies and sunspot fluctuations we construct posterior weights for the determinacy and indeterminacy region of the parameter space and estimates for the propagation of fundamental and sunspot shocks according to the estimated model u s monetary policy post 1982 is consistent with determinacy whereas the pre volcker policy is not we find that before 1979 indeterminacy substantially altered the propagation of shocks

carbon emission performance evaluation and allocation in chinese cities abstract this paper presents a dea approach with multiple abatement factors to evaluate co2 emission performance and allocate co2 emission quotas in chinese cities we first consider the difference of marginal abatement costs among cities and construct the non radial directional distance function with multiple abatement factors the total factor co2 emission performance index and its dynamic change index are then proposed to measure co2 emission performance considering equity and efficiency we develop a composite index by the hybrid method to allocate emissions quota which considers co2 emissions as well as co2 emission performance then we conduct an empirical study using inputs and outputs dataset of 71 chinese cities in 2005 2012 chinese cities have poor energy efficiency and still have high co2 emissions the eastern region outperforms the central region and the western region performs worst whereas the dynamic co2 emission performance of the central region has the largest increase the change of co2 emission performance is driven mainly by technological advances as for the co2 emission allocation the composite index method encourages cities to reduce emissions and enhance emission performance through carbon trading market it also motivates cities with high historical emissions to reduce their emissions by improving technology when they have poor co2 emission performance

analysis of iran s crude oil export future capacity the paper analyzes iran s oil export capacity and the factors affecting it first the local energy demand is reviewed and crude oil with 5 7 annual growth rate is introduced as a major source to respond to the increasing domestic energy demand then the national plans for controlling the local demand and replacing oil with other types of energy carriers are reviewed to create a view over the future of local demand for crude oil in iran in the next step crude oil production and exploration situation in iran are investigated and the required increase in production to maintain the present level of export is calculated by estimating the average capital expenditures for adding each barrel of new capacity to iran s daily oil production the necessary annual investment to compensate the production drop and domestic consumption growth for maintaining the export is introduced then the future of oil export in iran is predicted in three optimistic reference and pessimistic scenarios on the basis of the country s ability in managing the financial resources in upstream oil industry finally domestic and foreign investment and the history of buyback contracts and their undeniable role in development of iranian oil and gas projects are discussed

carbon dioxide emissions allocation a review carbon dioxide co2 emissions allocation plays a fundamental role in determining reduction responsibility at economy level or emission permits at firm level past decades have seen the development and applications of various methods for co2 emissions allocation this paper provides a literature review of co2 emissions allocation with emphasis on the evolution of allocation methods used it begins with a summary of the most popular allocation principles and criteria that lay a foundation for the development of allocation methods we then classify the existing allocation methods into four groups namely indicator optimization game theoretic and hybrid approaches the main features and findings of past studies are identified and summarized while the fairness principle prevails in earlier studies the efficiency principle has been found to receive increasing attention recently we also present a comparison of the empirical results based on ten popular indicator methods to show how indicator choice affects the allocation results issues related to selecting appropriate methods in co2 emissions allocation are finally discussed further research may be carried out to strike a balance between fairness and efficiency so that the allocation results become more widely acceptable and economically feasible

how will the chinese national carbon emissions trading scheme work the assessment of regional potential gains abstract the implementation of a national emissions trading scheme ets in china is likely to have an important effect on potential regional gains this study proposes a unified analytical framework for anticipating such gains in 2020 and estimates the key factors involved using data envelopment analysis based models the results indicate that 1 when the value of the marginal abatement cost is higher than the carbon price no regions will have an incentive to reduce emissions by technological improvements the only source of direct potential gains is from the amounts of carbon quota 2 as carbon price increases from cny 10 to 4000 per ton the indirect potential gains will increase because the strategies for carbon reduction are technological innovation or limit economic activities however jiangsu and shanghai will suffer potential losses even though the price is high because they have no more carbon reduction potential 3 most central provinces will have potential gains when the carbon price is lower in ets while regions rich in fossil energy sources will suffer potential losses however a middle price interval of cny 1000 2000 ton is more rational because it helps motivate market transactions and benefits low carbon technological innovations

a literature study for dea applied to energy and environment abstract this study systematically summarizes previous research efforts on data envelopment analysis dea applied to energy and environment in the past four decades including concepts and methodologies on dea environmental assessment industrial developments are very important for all nations in terms of their economic prosperities a problem is that the development produces various pollutions on air water and other types of contaminations all of which are usually associated with our health problems and climate changes thus it is necessary for us to consider how to make a balance between economic success and pollution mitigation to maintain a high level of social sustainability in the world it is widely considered that dea is one of the methodologies to examine the level of sustainability this study examines a recent research trend on dea applications from 1980s to 2010s nowadays many researchers have paid serious attention on how to combat various difficulties in the areas of energy and environment as a result the number of articles on dea applications on energy and environment has dramatically increased particularly after 2000s however it is true that dea has strengths and drawbacks in the applications therefore it is very important for us to carefully use dea for guiding large policy issues and business strategies such as the global warming and climate change an underlying premise of this study is that technology innovation in engineering and natural science may solve various problems by linking it with political and managerial efforts the use of dea provides a methodological linkage among them so enhancing the practicality in mitigating problems due to climate change and environmental pollutions this literature study along with a summary on conceptual and methodological developments provides us with guidelines for our future research works on dea on energy and environment issues

efficient allocation of co2 emissions in china a zero sum gains data envelopment model abstract the appropriate allocation of co 2 emission quotas can build up a solid foundation for future emissions trading building co 2 emissions allocation mechanism has significant practical implications based on radial zero sum gains data envelopment zsg dea allocation model this paper uses a non radial zsg dea model to allocate co 2 emissions between different chinese provinces unlike previous studies treating co 2 as the input variable we treat co 2 as the undesirable output variable the modified model can better reflect macro production process while earlier relevant models treated co 2 emissions as inputs this paper contributes to the existing resource allocation method and allocates china s provincial co 2 emissions from the view of technical efficiency the results of our paper reveal that 1 between 2006 and 2010 the cumulative optimal amounts of co 2 emissions were higher than the actual amounts in 12 provinces and lower in other 18 provinces 2 several energy abundant provinces such as shanxi and inter mongolia need to take more responsibilities in co 2 emissions reduction 3 after the zsg dea allocation all provinces co 2 emissions are on zsg dea frontier which reflects the overall pareto optimality

non parametric productivity analysis with undesirable outputs an application to the canadian pulp and paper industry this article extends the chavas cox approach to non parametric analysis by incorporating undesirable outputs to provide a more complete representation of the production technology inner and outer non parametric technology bounds are constructed the methods are illustrated with application to time series data for the canadian pulp and paper industry conventional measures that ignore changes in pollutant outputs underestimate true productivity growth further there is a large gap between estimates generated with reference to inner and outer bounds to the technology suggesting that researchers need to be aware of the limitations of results derived from analyses relying only on dea methods copyright 2001 oxford university press

measuring the performance of thermal power firms in china via fuzzy enhanced russell measure model with undesirable outputs abstract thermal power has accounted for the major part of the electricity generation over recent several decades in china it plays an important role in supporting china s economic development while it also brings great pressure to the environment protection because of a large amount of pollution generated during its production in order to solve or alleviate the environmental problem caused by thermal power firms efficiency evaluation is the first important step as thermal power firm is a complex system with multiple inputs and multiple outputs usually including fuzzy data and undesirable outputs in the productions in this paper we build an integrated enhanced russell measure model based on data envelopment analysis for evaluating the performance of decision making units in the presence of the undesirable outputs in fuzzy circumstance then this new model is applied to analyze the environmental performance and provide the benchmarks for the thermal power firms in china which can guide the decision makers to make suitable future production plans for improving their performance

integrated weighting approach to carbon emission quotas an application case of beijing tianjin hebei region abstract the coordinated development of beijing tianjin hebei region has been included in the chinese 12th five year plan as a national strategy accordingly the cooperation of energy saving and environmental protection is an important part at the present stage establishing carbon emission trading market in china is regarded as an effective measure to reduce and control carbon dioxide emission meanwhile it is an important task for government to allocate carbon emission quotas among regions in order to explore the cross provincial carbon trading market mode of china this paper aims to construct a comprehensive index and use the integrated weighting approach to simulate the carbon quota allocation of beijing tianjin hebei region the results show that firstly the indicator of responsibility which is about 0 56 is given relatively more weight among the three indicators by comparison the weights of capacity and potential are 0 13 and 0 30 secondly the provinces with strong economic ability and lower carbon reduction potential may get fewer proportions of carbon emission quotas such as beijing thirdly since undertaking the function transfer and dispersal of beijing and tianjin hebei should have a relatively high carbon emission quotas in the future carbon trading market these results may provide insightful support for decision makers to promote collaborative carbon reduction and allocate carbon quotas in beijing tianjin hebei region of china

green efficiency and environmental subsidy evidence from thermal power firms in china abstract to achieve green development ample environmental subsidies have been invested into many energy intensive firms such as thermal power firms in china investigations of the effects of this kind of subsidy can help to provide specific and important implications for ongoing regulations unlike previous studies on the national regional or sectoral level this paper measures green efficiency and its compositions of thermal power firms and studies the impact of environmental subsidies on green efficiency by using the classical slacks based measure and tobit model the results show that the average green efficiency ranges from 0 509 to 0 663 during 2010 2015 which is much lower than the general efficiency the green scale efficiency is the main reason for the low green efficiency thus indicating large room for improvement environmental subsidies negatively affect green efficiency and its decompositions from 2010 to 2013 the negative effect becomes weak and insignificant in 2014 and the environmental subsidies start to significantly promote green efficiency and its decompositions in 2015 according to our findings some implications relating to improving green scale efficiency increasing the intensity of environmental subsidies to firms and strengthening their supervision are proposed

undesirable outputs in efficiency valuations abstract efficiency measurement is usually based on the assumption that inputs have to be minimized and outputs have to be maximized in a growing number of applications however undesirable outputs are incorporated into the production model which have to be minimized in this paper various approaches for treating such outputs in the framework of data envelopment analysis dea are discussed and the resulting efficient frontiers are compared new radial measures are introduced which assume that any change of the output level will involve both undesirable and desirable outputs

endogenous business cycles with financial frictions this paper uncovers a series of belief shocks that drive the u s economy from both financial markets data and a financial accelerator model with self fulfiling prophecies indeterminacy in the eco

modeling undesirable factors in efficiency evaluation abstract data envelopment analysis dea measures the relative efficiency of decision making units dmus with multiple performance factors which are grouped into outputs and inputs once the efficient frontier is determined inefficient dmus can improve their performance to reach the efficient frontier by either increasing their current output levels or decreasing their current input levels however both desirable good and undesirable bad factors may be present for example if inefficiency exists in production processes where final products are manufactured with a production of wastes and pollutants the outputs of wastes and pollutants are undesirable and should be reduced to improve the performance using the classification invariance property we show that the standard dea model can be used to improve the performance via increasing the desirable outputs and decreasing the undesirable outputs the method can also be applied to situations when some inputs need to be increased to improve the performance the linearity and convexity of dea are preserved through our proposal

pareto improvement through a reallocation of carbon emission quotas abstract this article presents a methodology that discusses a reallocation of carbon emission quotas based on the zsg dea model also introduces the process of solving the zsg dea model in extensive detail and derives theorems 1 and 2 theorem 1 shows the equivalence in competition and the cooperation case while theorem 2 indicates the correlation between quota adjustment and efficiency change through this zsg dea model the determination of carbon emission quotas is no longer subjective and reasonable carbon emission quotas among countries can be obtained the reallocation of carbon emission quotas can not only ensure that all countries have 100 efficiencies but also help all countries gain through pareto improvement the conclusions of this paper are that most developed countries should increase their carbon emission quotas and that most less developed countries need to reduce theirs including the two most populous countries of china and india the reallocation process should be paid by selling the quotas of low efficient countries so that they can obtain funds to support their development while at the same time high efficient countries can produce more due to relaxation of environmental constraints thus achieving global pareto improvement

multilateral productivity comparisons when some outputs are undesirable a nonparametric approach multilateral productivity comparisons of firms producing multiple outputs some of which are undesirable are obtained by making two modifications to the standard farrell approach to efficiency measurement the restriction that production technology satisfy strong disposability of outputs is relaxed to allow for the fact that undesirable outputs may be freely disposable and the efficiency measures are modified to allow for an asymmetric treatment of desirable and undesirable outputs performance measures that satisfy these requirements are calculated as solutions to programming problems the methodology is applied to a sample of mills producing paper and pollutants

comparison of technology efficiency for co2 emissions reduction among european countries based on dea with decomposed factors abstract for consistent and effective co 2 reduction many countries need to improve not only the technical efficiency of co 2 mitigation but also environmental responsibility in this study we examine both the technical efficiency and voluntary environmental consciousness vec of 12 european countries using a two stage data envelopment analysis dea in the first stage we measured the technical efficiency of green energy technologies get associated with fossil fuels renewable energy and storage technologies of each country for energy generation with regard to co 2 emissions by surveying get related patents using the logarithmic mean divisia index lmdi we decomposed co 2 emissions into the following technological factors energy intensity fuel mix and co 2 emission coefficient in the second stage we quantified the vec in each country by investigating get patent changes via research and development r d investment at given changes in co 2 emissions the results show different aspects for each country in terms of technical efficiency and vec suggesting potential levels of both efficient co 2 reductions and desirable get development by using reference countries as a benchmark our study methodology and results can contribute to establishing effective national technology policy and aid in calls for common responsibility and the active participation of nations in addressing climate change

radial and non radial decompositions of luenberger productivity indicator with an illustrative application abstract viewing slacks as one possible source of inefficiency and that inputs have differential importance in the production process this paper develops based on the directional russell measure of inefficiency the non radial luenberger indicator this indicator is then shown as the sum of the individual input specific luenberger indicators the luenberger indicator and its various input specific indicators are also then shown as the composite measure of efficiency change and technical change this decomposition enables the researcher to empirically examine the contributions of each factor input towards the productivity change and its components efficiency change and technical change our proposed decomposition scheme is then empirically illustrated to analyze the eco productivity performance behavior of the 22 oecd countries during the period 1995 2004 our results indicate that first the productivity change estimates yielded from the non radial luenberger indicator are different from those yielded from its radial counterpart when slacks are present second most of these countries are found experiencing productivity growth due to technical progress alone and finally as regards the order of input specific contributions towards productivity growth capital contributes the most followed by savings in emissions and labor respectively

case study on initial allocation of shanghai carbon emission trading based on shapley value abstract carbon emission trading is an effective measure to reduce greenhouse gas emissions worldwide china has publicized plans to initiate the demonstration of carbon emission trading in seven regions as of 2013 initial allocation is fundamental but it proposes difficulty in the mechanism design of the carbon emission trading system benchmark grandfathering and the shapley value have been employed to simulate a specific case which consists of the initial allocation of carbon emission allowances of three power plants in shanghai china the results of the shapley value are regarded as a theoretical equitable reference the results of benchmark are similar to those of the shapley value however it is apparent that the allocation regarding grandfathering is inequitable considering other factors we proposed the following at the introduction of experimental stage free allocation pertaining to grandfathering can be adopted meanwhile benchmark should be prepared and adopted at the appropriate time furthermore a portion of the initial allowances can be reserved for auction and this portion for auction will escalate to the extent of 100 upon entering the formal stage in addition the tiered price mechanism and the subsidy policy are also suggested

consumption sentiment and economic news this paper investigates the influence of economic news on consumer sentiment and examines whether news shocks changes in coverage that would not be expected from incoming data on economic fundamentals have aggregate effects using monthly u s data and a structural vector autoregression i find that 1 sentiment is affected by news shocks 2 after filtering out effects of news shocks shocks to sentiment still have positive effects on consumer spending and 3 news shocks influence both spending and unemployment in significant though transitory ways these results are consistent with other evidence of a role of nonfundamental factors in aggregate fluctuations jel e21 e32 d12

regional allocation of co2 emissions allowance over provinces in china by 2020 the mitigation efforts of china are increasingly important for meeting global climate target since the rapid economic growth of china has led to an increasing share in the world s total co2 emissions this paper sets out to explore the approach for realizing china s national mitigation targets submitted to the unfccc as part of the copenhagen accord that is to reduce the intensity of co2 emissions per unit of gdp by 40 45 by 2020 as well as reducing the energy intensity and increasing the share of non fossil fuel consumption through regional allocation of emission allowance over china s provinces since the realization of china s mitigation target essentially represents a total amount emission allowance allocation problem an improved zero sum gains data envelopment analysis optimization model which could deal with the constant total amount resources allocation is proposed in this study by utilizing this model and based on several scenarios of china s economic growth co2 emissions and energy consumption a new efficient emission allowance allocation scheme on provincial level for china by 2020 is proposed the allocation results indicate that different provinces have to shoulder different mitigation burdens in terms of emission intensity reduction energy intensity reduction and share of non fossil fuels increase

spotting sunspots some evidence in support of models with self fulfilling prophecies abstract this paper adds financial assests to roger farmer s business cycle model with increasing returns and self fulfilling beliefs by using information from the financial markets in conjunction with the structure of the model we can uncover from financial data the belief shocks that drive the model specifically we assume that belief shocks drive both economic fluctuations and asset returns the financial market information allows us to identify these shocks we use our methods to generate dynamic simulations of the model and show that it has incremental predictive power for key us time series

allocating fixed costs and resources via data envelopment analysis abstract in this paper we show that data envelopment analysis dea can be viewed as maximising the average efficiency of the decision making units dmus in an organisation building upon this we present dea based models for a allocating fixed costs to dmus and b allocating input resources to dmus simultaneous to allocating input resources output targets are also decided for each dmu numeric results are presented for a number of example problems taken from the literature

efficiency of a fixed but allocatable input a non parametric approach the traditional non parametric or dea models measure efficiency for given inputs and outputs without allowing for reallocation of inputs these models do not look inside the technology but rather treat it as a black box in this paper we open up the box by modeling the possibility of reallocation of a fixed input

fixed cost and resource allocation based on dea cross efficiency abstract in many managerial applications situations frequently occur when a fixed cost is used in constructing the common platform of an organization and needs to be shared by all related entities or decision making units dmus it is of vital importance to allocate such a cost across dmus where there is competition for resources data envelopment analysis dea has been successfully used in cost and resource allocation problems whether it is a cost or resource allocation issue one needs to consider both the competitive and cooperative situation existing among dmus in addition to maintaining or improving efficiency the current paper uses the cross efficiency concept in dea to approach cost and resource allocation problems because dea cross efficiency uses the concept of peer appraisal it is a very reasonable and appropriate mechanism for allocating a shared resource cost it is shown that our proposed iterative approach is always feasible and ensures that all dmus become efficient after the fixed cost is allocated as an additional input measure the cross efficiency dea based iterative method is further extended into a resource allocation setting to achieve maximization in the aggregated output change by distributing available resources such allocations for fixed costs and resources are more acceptable to the players involved because the allocation results are jointly determined by all dmus rather than a specific one the proposed approaches are demonstrated using an existing data set that has been applied in similar studies

characterizing an equitable allocation of shared costs a dea approach abstract in many applications to which dea could be applied there is often a fixed or common cost which is imposed on all decision making units this would be the case for example for branches of a bank which can be accessed via the numerous automatic teller machines scattered throughout the country a problem arises as to how this cost can be assigned in an equitable way to the various dmus in this paper we propose a dea approach to obtain this cost allocation which is based on two principles invariance and pareto minimality it is shown that the proposed method is a natural extension of the simple one dimensional problem to the general multiple input multiple output case

did sunspot forces cause the great depression abstract we apply a dynamic general equilibrium model to the period of the u s great depression in particular we examine a modification of the real business cycle model in which the possibility of indeterminacy of equilibria arises in other words agents self fulfilling expectations can serve as a primary impulse behind fluctuations we find that the model driven only by these measured sunspot shocks can explain well the entire depression era that is the decline from 1929 to 1932 the subsequent slow recovery and the recession that occurred in 1937 1938

allocation of carbon dioxide emission permits with the minimum cost for chinese provinces in big data environment abstract the environmental problem and global warming have drawn many governments attention in order to solve the problem reasonable allocation of carbon dioxide emission cde permits is an important issue because it sets the targets for the decision making units to control the amount of carbon dioxide emission in this paper a new data envelopment analysis approach is proposed to evaluate the efficiency of decision making units in a big data environment and set the carbon dioxide emission permits for each decision making unit with the minimum costs comparing with the previous works on carbon dioxide emission permits allocation we firstly allocate the amount of carbon dioxide emission permits taking account into the cost each decision making unit should take to achieve its target moreover two kinds of linear programming problems are developed under efficiency invariance principle and efficiency changeability principle respectively as the allocation of carbon dioxide emission permits causes the minimum cost the decision making units are more easily to accept the allocation alternative finally our approach is applied to the carbon dioxide emission permits allocation among chinese provinces the results show that the approach can well allocate the cde permits with the minimum cost and also reveal the relationship between the marginal cost of reducing cde permits and the adjustment on them

a comprehensive review of data envelopment analysis dea approach in energy efficiency the main aim of this review article is to review of dea models in regarding to energy efficiency this paper reviewed and summarized the different models of dea that have been applied around the world to development of energy efficiency problems consequently a review of 144 published scholarly papers appearing in 45 high ranking journals between 2006 and 2015 have been obtained to achieve a comprehensive review of dea application in energy efficiency accordingly the selected articles have been categorized based on year of publication author s nationalities scope of study time duration application area study purpose results and outcomes results of this review paper indicated that dea showed great promise to be a good evaluative tool for future analysis on energy efficiency issues where the production function between the inputs and outputs was virtually absent or extremely difficult to acquire

a critical review of iran s buyback contracts abstract iran s oil and gas industry requires investments of us 15 billion in the short term and over us 70 billion in the medium term iran tries to interest international oil companies ioc in investing in iran s oil and gas business by offering buyback contracts under a buyback contract an ioc invests and when production starts the field is handed over to the national iranian oil company nioc or one of its representatives the ioc gets its costs and an agreed upon profit paid out of the oil and or gas gross profits assuming the field produces as agreed upon and the international energy prices are high enough according to the iranian government the buyback contract contains sufficient incentives for an ioc to invest in iran the iocs however disagree they claim that they solely bare the risks in a buyback contract whereas the iranian counterpart receives all windfall profits furthermore the iocs claim that the utilisation of iran s oil and gas reserves will be sub optimal if they are not involved in optimising long term recovery in this paper we investigate these claims and show that they are partly correct given iran s need for investment capital iran might have to change its policy

allocation of carbon permits within a country a general equilibrium analysis of the united kingdom abstract the kyoto agreement includes international trade in carbon permits from 2008 we have used a cge model to evaluate methods of allocating permits within the uk auctioning is broadly similar to a carbon tax with revenues recycled to reduce other distortions grandfathering some permits free to large firms would mean a loss of recycling and possibly give windfall profits to foreigners alternatively regularly revised allocation using best practice estimates would be similar to recycling revenue as an output subsidy such a system could allow much of the potential double dividend to be realised though an auction system might still be preferable

olympic ranking based on a zero sum gains dea model abstract it is usual to rank the participant countries in the olympic games in accordance with the number of medals they have won an alternative ranking is suggested in this paper this ranking is based on each country s ability to win medals in relation to its available resources this is an efficiency that can be measured with the help of data envelopment analysis dea for which two models exist the traditional dea model that takes into account variable returns to scale and a dea model based on the premise that the sum of the gains is zero constant sum of outputs it is the latter that is developed in this paper

disaggregating energy use cap among china s provinces the 2015 paris climate change negotiations represents the most ambitious worldwide effort to date to combat climate change as the largest energy consumer and carbon emitter china pledges 60 65 cut in carbon intensity below 2005 levels by 2030 to accelerate china s climate efforts china has also committed to cap its primary energy use at 4 8 billion tons of coal equivalent in 2020 this paper proposes an equitable and efficient scheme to disaggregate this national goal among provinces a three step disaggregation procedure is proposed which takes into account the initial allocation national redistribution and inter provincial adjustment first this study allocates the incremental energy quota taking 2010 as the base year second part of the energy quota is set aside by the central government for redistribution purposes while an incremental energy quota index comprising equity and efficiency criteria is used for initial allocation among provinces finally historical efforts and inter provincial energy flows are considered for inter provincial adjustment this disaggregation scheme is flexible and can be easily extended to allocation and management of other resource and environmental targets the empirical findings can assist decision makers in identifying which provinces are likely to over consume the energy quota relative to the proposed allocation and which provinces are likely to perform better in energy conservation moreover the results show that the energy cap set for 2020 is unachievable without further action market based instruments such as an energy allowance trading market are strongly recommended to achieve the energy use target in an equitable and cost effective manner

optimal resource allocation with minimum activation levels and fixed costs abstract we intend to analyze a problem of optimal resource allocation with both minimum and maximum activation levels and fixed costs the problem is shown to be np hard we study the consequent milp problem and propose a dynamic programming algorithm which exploits an efficient pruning procedure we present an application to a portfolio optimization problem in project financing a project financing firm partially funds different projects using external funding sources for the partial coverage of the financial requirements of each project

examining the drivers of total factor productivity change with an illustrative example of 14 eu countries abstract based on the different models developed by korhonen and luptacik korhonen p luptacik m 2004 eco efficiency analysis of power plants an extension of data envelopment analysis european journal of operational research 154 437 46 this contribution centers on the development of an intertemporal comparison in order to analyze eco efficiency change over time in this setup two model variants by korhonen and luptacik 2004 are used in order to provide deeper insights concerning the driving forces for the change in the eco efficiency which bias in technical change can be observed is it more input saving or pollution reducing for illustration purposes the proposed approach is used to analyze the performance of 14 countries of the european union for the period 1995 2004 an average eco productivity growth of 22 is observed the estimated contribution of improved use of input is 20 and that of reduced relation of greenhouse gas emissions is 23 therefore it is concluded that on average the eco productivity growth is more driven by improved environmental conditions

energy consumption pollutant emissions and economic growth in south africa article i nfo article history this paper examines the long run and the causal relationship between economic growth pollutant emissions and energy consumption for south africa for the period 1965 2006 in a multivariate framework which includes labour and capital as additional variables using the bound test approach to cointegration we found a short run as well as a long run relationship among the variables with a positive and a statistically significant relationship between pollutant emissions and economic growth further applying a modified version of the granger causality test we also found a unidirectional causality running from pollutant emissions to economic growth from energy consumption to economic growth and from energy consumption to co2 emissions all without a feedback the econometric evidence suggests that south africa has to sacrifice economic growth or reduce its energy consumption per unit of output or both in order to reduce pollutant emissions in the long run however it is possible to meet the energy needs of the country and at the same time reduce co2 emissions by developing energy alternatives to coal the main source of co2 emissions however the econometric results upon which the policy suggestions are made should be interpreted with care as they may not be sufficiently robust enough to categorically warrant the choice of an unpalatable policy option by south africa

do iran s buy back service contracts lead to optimal production the case of soroosh and nowrooz abstract we model the dynamically optimal oil production on iran s offshore soroosh and nowrooz fields which have been developed by shell exploration through a buy back service contract in particular we examine the national iranian oil company s nioc actual and contractual oil production behavior and compare it to the production profile that would have been optimal under the conditions of the contract we find that the contract s production profile is different from optimal production profile for most discount rates and that the nioc s actual behavior is inefficient its production rates have not maximized profits because the nioc s objective is purported to be maximizing cumulative production instead of the present discounted value of the entire stream of profits we also compare the nioc s behavior to the production profile that would maximize cumulative production we find that even though what the contract dictates comes close to maximizing cumulative production the nioc has not been achieving its own objective of maximizing cumulative production

environmental efficiency of land transportation in china a parallel slack based measure for regional and temporal analysis abstract as the second largest economic entity in the world china plays an important role in controlling global carbon dioxide co 2 emissions the land transportation sector including railway transportation and road transportation has been the most important source of emissions in china and the average co 2 emissions of land transportation were 529 31 million tons during the period 2009 2012 in this study a parallel slack based measure data envelopment analysis model is proposed which is used for evaluating the overall efficiency of the land transportation sector and individual efficiencies of the railway transportation and highway transportation subsectors at the same time considering co 2 emissions the empirical results lead to three conclusions a only anhui province is efficient each year during 2009 2012 b the environmental efficiency of the eastern area in china is the best followed by the central area with the western area being the worst c the performance of railway transportation is better than that of highway transportation these three conclusions lead to policy suggestions to promote highway transportation technological innovation and narrow the regional imbalances in land transportation this paper makes two main contributions the model advances improvements to methods used in the data envelopment analysis technique and also provides governments with a practical and yet easy to adopt perspective to implement land transportation performance measurement that aids in decision making

energy consumption carbon emissions and economic growth in china abstract this paper investigates the existence and direction of granger causality between economic growth energy consumption and carbon emissions in china applying a multivariate model of economic growth energy use carbon emissions capital and urban population empirical results for china over the period 1960 2007 suggest a unidirectional granger causality running from gdp to energy consumption and a unidirectional granger causality running from energy consumption to carbon emissions in the long run evidence shows that neither carbon emissions nor energy consumption leads economic growth therefore the government of china can purse conservative energy policy and carbon emissions reduction policy in the long run without impeding economic growth

dea models for resource reallocation and production input output estimation abstract this paper discusses the inverse data envelopment analysis dea problem with preference cone constraints an inverse dea model can be used for a decision making unit dmu to estimate its input output levels when some or all of its input output entities are revised given its current dea efficiency level the extension of introducing additional preference cones to the previously developed inverse dea model allows the decision makers to incorporate their preferences or important policies over inputs outputs into the production analysis and resource allocation process we provide the properties of the inverse dea problem through a discussion of its related multi objective and weighted sum single objective programming problems numerical examples are presented to illustrate the application procedure of our extended inverse dea model in particular we demonstrate how to apply the model to the case of a local home electrical appliance group company for its resource reallocation decisions

economic instruments for environmental regulation our knowledge about economic incentive approaches to pollution control has grown rapidly in the two decades in which they have received serious analytical attention not only have the theoretical models become more focused and the empirical work more detailed but we have now had over a decade of experience with emissions trading in the u s and emission charges in europe as the world community becomes increasingly conscious of both the need to tighten environmental controls and the local economic perils associated with tighter controls in a highly competitive global marketplace it seems a propitious time to stand back and to organize what we have learned about this practical and promising approach to pollution control that may be especially relevant to current circumstances this paper draws upon economic theory empirical studies and actual experience with implementation to provide a brief overview of some of the major lessons we have learned about two economic incentive approaches emissions tradi copyright 1990 by oxford university press

efficiency and allocation of emission allowances and energy consumption over more sustainable european economies abstract efficient use of energy reduction in fossil fuel dependence and control of co2 emissions are all fundamental to development of a sustainable economy competitiveness in energy use saves imports of oil and gas increases gross domestic product and creates new jobs in the renewable energy and energy efficiency sectors this study identifies the more or less competitive european union member states in terms of sustainable growth using data envelopment analysis dea model and proposes new allocations of country greenhouse gas limits and energy consumption using a zero sum gains dea model the analysis of european countries fills a gap in the existing literature and contributes to the discussion on the 2020 2030 european strategy proposing an efficiency based indicator which measures country performance in terms of economic social and environmental factors gdp represents the economic factor population represents the social factor and emissions final and renewable energy consumption are the environmental factors the numerical results show that the initial allocations are inefficient applying the modelled reallocation the most efficient countries are rewarded by potential increases in emission and energy consumption while the least efficient countries must bring about decreases to achieve full efficiency

mean reversion in equilibrium asset prices this paper demonstrates that negative serial correlation in long horizon stock returns is consistent with an equilibrium model of asset pricing when investors display only a moderate desire to smooth their consumption commonly used measures of mean reversion in stock prices calculated from historical returns data nearly always lie within a 60 percent confidence interval of the median of the monte carlo distributions implied by the authors equilibrium model from this evidence the authors conclude that the degree of serial correlation in the data could plausibly have been generated by their model copyright 1990 by american economic association

energy related ghg emission in agriculture of the european countries an application of the generalized divisia index abstract sustainable agriculture food security and welfare of the farmers require an integrated analysis of the performance of the agricultural sector in this paper we follow the energy environment economy framework and focus on decomposition of changes in the energy related greenhouse gas ghg emission in agricultural sectors of the selected european union eu countries the research relies on country level data from fao and eurostat describing economic activity energy use and ghg emission in the agricultural sectors of the european countries during 1995 2012 the main drivers carbon factor of energy consumed in agriculture energy intensity of agricultural production and growth in agricultural production and their impacts on the energy related ghg emissions in agriculture are analysed for selected countries the generalized divisia index is applied to decompose the changes in the energy related ghg emissions france latvia and belgium appeared as the only countries with increase in ghg emissions during 1995 2012 in the case of france energy intensity went up along with increase in the scale of agricultural production in latvia and belgium an increase in carbon factor appeared as the major factor driving an increase in ghg emissions the appropriate policies need to be employed in these countries seeking to reduce ghg emissions from energy consumption in agriculture improvements in energy efficiency appear to be a more feasible mean for ensuring further reductions in ghg emission

population economic growth and regional environmental inefficiency evidence from u s states we apply a conditional directional distance function allowing multiple exogenous factors to measure environmental performance we evaluate the air pollution performance levels of u s states for the years 1998 and 2008 states environmental inefficiency is determined by population size and gdp per capita gdppc the overall results reveal that there is much variation in environmental inefficiencies among the u s states a second stage nonparametric analysis indicates a nonlinear relationship between states population size gdppc levels and states environmental inefficiency levels our results indicate that environmental inefficiency on the whole decreases with increased population and income per capita but there are limits to this improvement and at high income and population levels the tendency may reverse

real business cycles and the animal spirits hypothesis abstract we calibrate a quantitative equilibrium macroeconomic model with an aggregate technology that is subject to increasing returns and show that this model may display fluctuations at business cycle frequencies even when there are no shocks to the fundamentals of the economy these fluctuations are due to the self fulfilling beliefs of investors which we call animal spirits we compare the impulse response functions predicted by our model and by two other more standard models with a four variable vector autoregression on u s data our animal spirits economy is the most successful of the three at matching broad features of the dynamic responses in the data journal of economic literature classification numbers e00 e3 e32

metafroniter energy efficiency with co2 emissions and its convergence analysis for china this paper measures the energy efficiency performance with carbon dioxide co2 emissions in 30 provinces in china during the period of 1997 2011 using a meta frontier framework with the improved directional distance function ddf we construct a new environmental production possibility set by combining the super efficiency and sequential data envelopment analysis dea models to avoid discriminating power problem and technical regress when evaluating efficiency by ddf then it is used in a meta frontier framework to reflect the technology heterogeneities across east central and west china the results indicate that eastern china achieved the highest progress inefficiency relative to the metafrontier followed by western and the central china by focusing on technology gaps we offer some suggestions for the different groups based on group frontier and meta frontier analyses the inefficiency can be attributed to managerial failure for eastern and western china and technological differences for central china the convergence analysis shows that energy and co2 emission governance will produce negative effects on economic growth and it is suitable and acceptable to introduce rigorous environmental measures in eastern china

some unpleasant general equilibrium implications of executive incentive compensation contracts abstract we consider a simple real business cycle model in which shareholders hire self interested executives to manage their firm a generic family of compensation contracts similar to those employed in practice is studied when compensation is convex in the firm s dividend an increase in the firm s output results in a more than proportional increase in the managers income incentive contracts of sufficient yet modest convexity are shown to result in an indeterminate general equilibrium one in which business cycles are driven by self fulfilling fluctuations in managers expectations the proposed family of contracts may yield first best outcomes for specific parameter choices

the influence of energy consumption of china on its real gdp from aggregated and disaggregated viewpoints abstract this paper investigated the causal relationship between energy consumption and gross domestic product gdp in china at both aggregated and disaggregated levels during the period of 1978 2009 by using a modified version of the granger 1969 causality test proposed by toda and yamamoto 1995 within a multivariate framework the empirical results suggested the existence of a negative bi directional granger causality running from aggregated energy consumption to real gdp at disaggregated level of energy consumption the results were complicated for coal empirical findings suggested that there was a negative bi directional granger causality running from coal consumption to real gdp however for oil and gas empirical findings suggested a positive bi directional granger causality running from oil as well as gas consumption to real gdp though these results supported the feedback hypothesis the negative relationship might be attributed to the growing economy production shifting towards less energy intensive sectors and excessive energy consumption in relatively unproductive sectors the results indicated that policies with reducing aggregated energy consumption and promoting energy conservation may boost china s economic growth

a literature survey on energy growth nexus abstract this paper provides a survey of the recent progress in the literature of energy consumption economic growth and electricity consumption economic growth causality nexus the survey highlights that most empirical studies focus on either testing the role of energy electricity in stimulating economic growth or examining the direction of causality between these two variables although the positive role of energy on growth has become a stylized fact there are some methodological reservations about the results from these empirical studies a general observation from these studies is that the literature produced conflicting results and there is no consensus neither on the existence nor on the direction of causality between energy consumption electricity consumption and economic growth as a policy implication to avoid from conflicting and unreliable results the authors may use the autoregressive distributed lags bounds test two regime threshold co integration models panel data approach and multivariate models including new variables such as real gross fixed capital formation labor force carbon dioxide emissions population exchange rates interest rates etc thus the authors should focus more on the new approaches and perspectives rather than by employing usual methods based on a set of common variables for different countries and different intervals of time

competition strategy and efficiency evaluation for decision making units with fixed sum outputs this paper develops a dea data envelopment analysis model to accommodate competition over outputs in the proposed model the total output of all decision making units dmus is fixed and dmus compete with each other to maximize their self rated dea efficiency score in the presence of competition over outputs the best practice frontier deviates from the classical dea frontier we also compute the efficiency scores using the proposed fixed sum output dea fsodea models and discuss the competition strategy selection rule the model is illustrated using a hypothetical data set under the constant returns to scale assumption and medal data from the 2000 sydney olympics under the variable returns to scale assumption

a more scientific allocation scheme of carbon dioxide emissions allowances the case from china abstract efficient allocation of carbon dioxide co2 emissions allowances is essential to the realization of the emissions reduction goal using china as an example this study applies a zero sum gains data envelopment analysis zsg dea model to translate the country s reduction target into provincial goals based on the chinese government s 2020 reduction goal to evaluate efficiency scores we employ the epsilon based measure model that combines radial and non radial characteristics different from prior studies we emphasize the effect of industrial structure on co2 emissions and calculate a composite gross domestic product gdp index as one of the output variables by utilizing the zsg dea model and based on china s provincial co2 emissions allowances as the input variable the composite gdp index and the population as the output variable we obtain an optimal reallocation scheme after four iterations a comparison between the results and official reduction goals shows that the government should increase co2 emissions allowances appropriately for most provinces with high proportions more than 40 of second industry increment in gdp thereby carrying implications for policymakers with china as an example these findings have global implications as regards developing a more scientific allocation scheme especially for regions with unbalanced industrial structures