Comparative study on different initial allocation methods of carbon emission rights from the perspective of efficiency: Historical method, benchmark method, and ZSG-DEA method

State Grid Energy Research Institute Co., Ltd, Beijing 102209, China

^* wangyu1@sgeri.sgcc.com.cn

Abstract

The research focuses on the initial allocation of carbon emission rights, aiming to analyze the advantages, disadvantages, and applicable scenarios of historical methods, benchmark methods, and ZSG- DEA methods from an efficiency perspective, and provide reference for policy-making. The study focused on 31 provinces in China in 2020, collected multidimensional data, and used three methods to calculate quota allocation schemes. The empirical results showed that the ZSG-DEA method performed the best, with an average efficiency improvement of 17.8% and an increase of 5 efficient provinces, which can balance carbon reduction and regional development equity; Although the historical method has good political acceptability, it is difficult to stimulate technological progress, and the benchmark method considers differences in carbon intensity but does not take into account multidimensional development capabilities. Based on this, the study suggests that policy makers choose allocation methods based on national conditions and industry characteristics, improve regulatory oversight and data systems, and guide enterprises to incorporate emission reduction into their strategies to achieve a win-win situation for both the economy and the environment.