Considering production limits in greenhouse gas emission trading using the data envelopment analysis approach
Journal
Annual Hawaii International Conference on System Sciences
Pages
1157-1166
ISBN
9780769545257
Date Issued
2012
Author(s)
Abstract
Greenhouse gas emissions have been proven to be closely related to global climate changes. Thus reducing and trading greenhouse gases are important issues around the world. In order to solve this critical issue, this paper presents an alternative approach to implementing greenhouse gas (i.e., undesirable outputs) emission trading mechanisms, considering the balance between the environment and economic development. Specifically, an aggregated concept in the form of data envelopment analysis (i.e., Centralized DEA) is used to construct a cap-and-trade model that considers production limitations. An application that illustrates undesirable output (i.e., greenhouse gases: CO2 and SO2) emission and trading in 51 countries is also demonstrated. The application effectively illustrates the constant buying and selling of information under total amount quotas while maximizing desirable output levels. The results also present directions for possible improvements in country efficiency. © 2012 IEEE.
Other Subjects
Carbon dioxide; Climate change; Commerce; Data envelopment analysis; Emission control; Gases; Greenhouse gases; Sulfur dioxide; Cap and trade; Critical issues; Desirable outputs; Economic development; Emission trading; Global climate changes; Production limits; Gas emissions
Publisher
IEEE Computer Society
Type
conference paper