Emissions reduction targets and wealth distribution effects through interprovincial emissions trading scheme in China

Abstract

Our empirical results confirm that multi-indicators Shapley value allocation is an equal and effective emissions reduction allocation, which can reduce the provincial differences of each indicator, and optimize interprovincial emission reduction efficiency and emissions market efficiency. In interprovincial emission trading markets, Guangdong, Zhejiang, Shanghai, Jiangsu, Fujian, Tianjin and Beijing provinces are the main emissions allowances buyers, however Hebei, Shanxi, Xinjiang and Inner Mongolia provinces are the main emissions allowances sellers, the Eastern and Southern coast regions deliver much capital assistances and technology supports to the Southwest and Northwest regions through interprovincial emissions trading markets, and then play the role of optimizing resources redistribution through interprovincial emissions trading markets.