Carbon Emissions Abatement (CEA) allocation and compensation schemes based on DEA
As environment constraints on economic growth are strengthening, Carbon Emissions Abatement (CEA) allocation becomes a significant issue that draws academia׳s attention. In the literature, the Data Envelopment Analysis (DEA) technique has been applied to obtain CEA allocation with centralized models...
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Published in | Omega (Oxford) Vol. 53; pp. 78 - 89 |
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Main Authors | , , , , |
Format | Journal Article |
Language | English |
Published |
Oxford
Elsevier Ltd
01.06.2015
Pergamon Press Inc Elsevier |
Subjects | |
Online Access | Get full text |
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Summary: | As environment constraints on economic growth are strengthening, Carbon Emissions Abatement (CEA) allocation becomes a significant issue that draws academia׳s attention. In the literature, the Data Envelopment Analysis (DEA) technique has been applied to obtain CEA allocation with centralized models. Nevertheless, a centralized allocation plan suffers from an implementation difficulty in persuading decision-making units (DMUs) into an agreement. In this paper, we propose a new two-step method to mitigate this side effect. In the first step, we provide improved DEA-based centralized allocation models under the assumptions of constant returns-to-scale (CRS) and variable returns-to-scale (VRS) respectively and in the second step, two compensation schemes are developed for centralized allocation plans. An empirical application to the countries in Organization for Economic Co-operation and Development (OECD) is presented to elaborate the main idea.
•It is shown that the GDP of a country is concave with respect to its CEA level under both CRS and VRS assumptions.•A two-step method is proposed to alleviate the conflict between the overall and individual interests in CEA allocation. |
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ISSN: | 0305-0483 1873-5274 |
DOI: | 10.1016/j.omega.2014.12.005 |