Guangdong Province Industry Carbon Quota Allocation Mechanism Based On 3E Theory

How to coordinate the contradiction between environmental destruction and economic development and formulate scientific emission reduction policies to alleviate global warming has become an important task for governments of all countries.As the world’s largest developing country and carbon dioxide emitting country,China is striving to implement a sustainable emission reduction strategy.As one of China’s most important environmental control mechanisms,the Emissions Trading Scheme(ETS)aims to alleviate the contradiction between energy-economy-environment(3E)systems and achieve the Sustainable Development Goals(SDG).And any such plan needs to go through: the initial carbon quota allocation process.This article first sorts out the relevant literature involved in the 3E theory and the initial carbon quota allocation method.Then based on the example analysis of the carbon emissions of the eight major industries in Guangdong Province,through the gray prediction method,combined with the economic development planning and emission reduction planning of Guangdong Province,this paper found that the eight major industries in Guangdong Province need to carry out a large number of energy-saving emission reduction activities in 2020(38.29 million tons of carbon dioxide).Therefore,how to allocate emission reduction tasks has become an important issue.After that,this paper analyzes the two main methods currently used by the Guangdong Emissions Trading Scheme-the grandfather method and the benchmark method,and uses examples and models to analyze their limitations in the current carbon quota allocation process.In the research on initial carbon quota allocation,the traditional grandfather-based allocation method cannot effectively resolve the contradictions between 3E systems;the process of benchmarking is slow,and it is still difficult to solve the problem of carbon quota allocation in multiple industries(especially when including industries that do not use the benchmark method).Therefore,this paper proposes to combine the 3E target with the quota allocation problem,and establish a dual target programming model that considers both economic targets and energy targets,while environmental targets are reflected in constraints.Subsequent empirical analysis in Guangdong Province showed that the 3E method is superior to the grandfather method in some respects.When the weight given to the energy target is within a certain range,the 3E method can optimize the total emission reduction cost and emission efficiency at the same time,which not only reflects the "polluter pays" principle,but also avoids the possibility of excessive profits from excessive quotas.In other cases,the 3E approach can unilaterally increase energy or economic goals to reflect decision preferences.The findings of this article are of great significance to decision-makers seeking to formulate new regulations for the national emissions trading system.In particular,it provides optimization ideas for the Guangdong province’s industry carbon quota allocation mechanism.