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http://dx.doi.org/10.15266/KEREA.2022.31.4.733

Allocating CO2 Emission by Sector: A Claims Problem Approach  

Yunji Her (Korea Energy Economics Institute)
Publication Information
Environmental and Resource Economics Review / v.31, no.4, 2022 , pp. 733-753 More about this Journal
Abstract
Korean government established the Nationally Determined Contribution (NDC) in 2015. After revising in 2019, the government updated an enhanced target at the end of last year. When the NDC is addressed, the emission targets of each sector, such as power generation, industry, and buildings, are also set. This paper analyzes the emission target of each sector by applying a claims problem or bankruptcy problem developed from cooperative game theory. The five allocation rules from a claims problem are introduced and the properties of each rule are considered axiomatically. This study applies the five rules on allocating carbon emission by sector under the NDC target and compares the results with the announced government target. For the power generation sector, the government target is set lower than the emissions allocated by the five rules. On the other hand, the government target for the industry sector is higher than the results of the five rules. In other sectors, the government's targets are similar to the results of the rule that allocates emissions in proportion to each claim.
Keywords
NDC; Claims problem; Sectoral emission target; Carbon emission target allocation;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
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