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Centralised reallocation of emission permits using DEA
Umeå University, Faculty of Social Sciences, Department of Economics.
Department of Industrial Management, University of Seville, Escuela Superior de Ingenieros, Camino de los Descubrimientos, s/n, 41092 Sevilla, Spain.
Department of Industrial Management, University of Seville, Escuela Superior de Ingenieros, Camino de los Descubrimientos, s/n, 41092 Sevilla, Spain.
2009 (English)In: Central European Journal of Operational Research, ISSN 0377-2217, Vol. 193, no 3, 752-760 p.Article in journal (Refereed) Published
Abstract [en]

In this paper a data envelopment analysis (DEA) approach to the problem of emission permits reallocation is presented. It can be used with conventional command and control as well as with an allowance market. It uses a centralized point of view, which represents the common good. In the model it is assumed that firms produce two types of outputs: desirable outputs (i.e. good outputs with positive value for consumers) and undesirable outputs (i.e. bad outputs with negative value for consumers, such as emissions of pollutants). The proposed approach has three phases, which correspond to three objectives that are pursued lexicographically. The three objectives are maximizing aggregated desirable production, minimizing undesirable total emissions and minimizing the consumption of input resources. The relative priority of these objectives is defined by the regulator. The whole approach is units-invariant and does not require information on input and output prices. The approach is applied on a dataset from the Swedish pulp and paper industry.

Place, publisher, year, edition, pages
Elsevier , 2009. Vol. 193, no 3, 752-760 p.
Keyword [en]
: Environment; Emission permits, Cap-and-trade, Allowance allocation, Data envelopment analysis
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:umu:diva-26896DOI: 10.1016/j.ejor.2007.07.029OAI: oai:DiVA.org:umu-26896DiVA: diva2:274641
Available from: 2009-10-30 Created: 2009-10-30 Last updated: 2010-12-07Bibliographically approved

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CiteExportLink to record
Permanent link

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Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf