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Measurement and Evaluation of the Efficiency of Carbon Emission Trading Markets in China

Author(s)

Zhipeng Yan1,*, Yue Hu1, Qinglong Wu1, Shan Wang2

Affiliation(s)

1School of Economics and Management, North University of China, Taiyuan, Shanxi, China 2Beijing Aerospace Institute for Metrology and Measurement Technology, Beijing, China *Corresponding Author.

Abstract

This paper constructed an input-output indicator system for carbon emissions trading market from both primary and secondary markets, adopted DEA model to measure the national carbon market’s and seven local carbon markets’ efficiency, then classified them by hierarchical cluster method, and further analyzed scale returns and improvement space. The results show that the national carbon market and local carbon markets in Beijing, Shenzhen, Hubei and Shanghai are leading, while the local carbon market in Guangdong is in the middle, and the carbon markets in Chongqing and Tianjin are left behind. Further analysis of scale returns and room for improvement reveals that the national carbon market and the carbon markets in Beijing, and Shenzhen have consistently maintained constant scale returns and there is no room for improvement. The carbon markets in Shanghai and Hubei have relatively little room for improvement. There is significant room for improvement in the carbon markets of Guangdong, Chongqing, and Tianjin. Finally, suggestions about pure technology and scale for each carbon market are put forward.

Keywords

Carbon Market; Efficiency Measurement; DEA Model; Hierarchical Cluster

References

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