An analysis on the adoption of an interregional carbon emission reduction allocation approach in the context of China's interprovincial carbon emission transfer

Due to interregional carbon emission (CE) transfer, the CE reduction allocation approach is crucial to the overall CE reduction effect. The prevalent allocation mode applies the production-based principle (PBP) and causes equity and efficiency losses of CE reduction. The exploration of a CE reduction policy under the consumption-based principle (CBP) is highly demanded. In this article, by studying the transfer of CEs embodied in interprovincial trade (CEs-PT) in 1997-2007 within China, we propose a CE reduction allocation approach under the CBP. We found that net CEs-PT were huge and had increased from 172.22 million tons (Mts.) to 425.94 Mts. The main transfer flow was from the resource-based provinces to the economically developed provinces, from North China to South China. Under the PBP, the transfer of CEs-PT caused serious equity and efficiency losses of CE reduction in China. Then, we propose a CE reduction allocation approach under the CBP that considers the long-term dynamic change of regional CEs. The approach can eliminate equity loss, improve CE reduction efficiency, and avoid the impact of short-term fluctuations of regional CEs. Based on this approach, we calculated China's provincial CE reduction responsibility and found that compared with the allocation approach under the PBP, the CE reduction responsibility of most net exporters of CEs-PT decreased, while that of most net importers increased. To accomplish CE reduction efficiently and economically, we propose a CE reduction trading system. The research can provide support for CE reduction allocation policy and CE reduction trading system for China and other countries.

Automated summary

This article examines the transfer of carbon emissions in interprovincial trade in China and proposes a carbon emission reduction allocation approach based on the consumption principle. It is found that under the production-based allocation principle, carbon emission transfer leads to equity and efficiency losses in China. The proposed approach under the consumption principle can improve emission reduction efficiency and mitigate the impact of short-term fluctuations in regional carbon emissions.