Managing Carbon Efficiency and Carbon Equity

Abstract

China has committed to achieving carbon neutrality by 2060, primarily focusing on reducing carbon intensity. Understanding the regional embodied carbon emissions is critical for managing carbon efficiency and carbon equity in this process. Using the input-output and SBM-DEA models, this article first calculates China's regional embodied carbon emissions. The results reveal substantial carbon transfers between China's different regions. Therefore, designing reduction pathways solely based on production-based carbon emissions raises fairness concerns. To address this, this article employs the SBM-DEA model to calculate the regional reduction potential and marginal abatement costs using the regional embodied carbon emissions and optimize China's pathways of regional carbon emission reduction. The new pathways consider consumption-based reduction potential, marginal abatement cost, and reduction equity, and are all in line with China's carbon reduction target. These schemes are of practical significance for China to develop a more efficient and equitable regional emission reduction plan.