China Provincial CO₂ And SO₂ Emissions Rights Allocation Research

China’s rapid economic development has brought the fast growth of CO2 and SO2 emissions, which will close to the limit of environmental carrying capacity, so the central government made the constraint of provincial carbon intensity and SO2 emissions in the "12·5" planning. At present, the academia is lack of the system considerations of CO2 and SO2’s provincial allocation, in this paper, we will use ZSG-DEA based on environmental production technology to design the allocation of CO2 and SO2 emissions under macro framework of total factor production function. The article mainly involves two aspects of work:analysis and evaluate the standard of distribution of CO2 and SO2 in 2008-2012, and explore the maximum space of reduction of various provinces; distribution method of CO2 and SO2 emissions in 2015 is formulated by using the model, and compare it with the national standard of administrative allocation, the conclusions of this paper mainly has following several aspects.There is 44.7% space of reduction of CO2 emissions nationwide, but SO2 emissions’ reduction potential is greater, the reduced space reaches 62.3%. From CO2 and SO2 emission reduction pressure, the eastern region is much smaller than the central and western regions, and the western region is slightly smaller than the central region, the central and western regions is much higher in SO2 emission than CO2 emissions from reduction space. To enhance China’s CO2 and SO2 emission reduction performance, the government should focus on central and western provinces which have a larger reduction space, accelerate the upgrade of traditional industrial structure and the development and utilization of new energy.After ZSG redistribution, there are 13 provinces which can increased carbon emissions appropriately, there are 10 provinces can increase the sulfur emissions, these areas must make proper use of these extra emissions quota based on local economy and ecological environment. The eastern region allows increased emissions, while the central and western regions should decrease emissions. The carbon emission quotas of the central and western regions are decreasing year by year when compared to the eastern area. The sulfur actual emissions of western region accounts for 36.93%, but the allowed ZSG sulfur emissions quotas is least, the western region will face enormous SO2 emission reduction pressure.According to the provincial carbon and sulfur emissions quotas in 2015, we divide 30 provinces into three kinds of regions, the development path of each kind of area is not the same. The A and B class areas can choose to rent these extra carbon or sulfur emissions quotas, but B area remain the reduced space of carbon and sulfur emissions, the C class areas need to buy the deficiency of carbon and sulfur emissions in short-term, to ensure social stability and sustainable economic development. The state administrative allocation mechanism takes "one size fits all" which ignores the difference of provincial economy and environment, and the proposed ZSG-DEA efficiency distribution mechanism seeks to maximize the technology efficiency of carbon and sulfur emissions in all provinces, emphasizing the overall Pareto optimality of energy-environment-economy.