Research Of Carbon Emission Efficiency And Allocation Based On DEA With Max-min Satisfaction Degree And Common Set Of Weights

In recent years, with the rapid increase in the economy of China, coupled with the relatively weak management and technical level, the consumption of large quantities of energy increase very fast, the rapid growth of greenhouse gas emissions into the atmosphere, the Chinese air pollution is becoming more serious. How to change the high pollution, high consumption what the extensive mode of economic development has. How to reduce greenhouse gas emissions and achieve comprehensive and coordinated program is our urgent problem. Prerequisite for reform is must clearly recognize the status, so the status of China’s provinces and autonomous regions’current carbon efficiencies are evaluated in a fair manner reasonably is very crucial. With a fixed amount of carbon emissions, how to be allocated to the provinces and the autonomous regions in an equitable and efficient way is a top priority.Taking into account the traditional DEA model in the evaluation of the efficiency, it allows individual decision-making units to arbitrarily determine the weights of all variables, leading to the evaluation of all decision-making units’ efficiencies on a different benchmark. In this paper, a DEA model based on Max-min satisfaction degree and common set of weights model is produced to evaluating the status of provinces and the autonomous regions’ carbon emissions. This model assumes that all decision-making units are collective rationality units and its objective is to maximize the satisfaction degrees of all the DMUs. It means that when the DMU maximize their own satisfaction degrees, they will choose the optimal set of weights as the evaluation criterion to maximize others’ satisfaction degrees. Therefore, the model considers firstly maximize the DMU whose satisfaction degree is the smallest in all decision-making units, then maximize satisfaction degrees of all other decision making units in turn. The final efficiencies are easily accepted by all decision-making units. Since the model is a linear programming model, then this paper gives two corresponding algorithms.Based the thought of the DEA model based on Max-min satisfaction degree and common set of weights, we propose a fixed cost allocation DEA model based on Max-min satisfaction degree and common set of weights model. Ensuring that all decision-making units are effective after allocated with a certain amount of carbon emissions, maximize all the satisfaction degrees of the final optimal allocation scheme. Similarly, this method can allocate the fixed cost allocation in a fair and efficiency way.In order to achieve the reduction of carbon emissions, the fixed carbon emissions must be allocated to the provinces and administrative regions of China in a reasonable and fair way and should be implemented to the specific subjects, So in this paper we firstly use DEA efficiency evaluation model based on Max-min satisfaction degrees and common set of weights to evaluate the efficiencies rates of China’s provinces carbon discharge status in2009. The provinces and autonomous regions of China is divided into three regions which are eastern, central and western regions to be analyzed their efficiencies of the current situation, some corresponding policy advice is proposed to some regions to improve their efficiencies. Then use DEA fixed cost allocation model based on Max-min satisfaction degrees and common set of weights, considering the carbon emissions of provinces and administrative regions as the undesirable output, their sum is considered as the fixed cost to be allocated. Then calculate how much the carbon emission right provinces and autonomous regions can be assigned in a fair and efficient allocation scheme, then compare them with their actual carbon emissions and make some guidance to these provinces.