Journal of Korean Institute of Industrial Engineers (대한산업공학회지)

Korean Institute of Industrial Engineers (대한산업공학회)
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Centralized Allocation of GHG Emissions based on DEA

DEA를 활용한 중앙집중식 온실가스 감축 할당 모형

  • Cho, Narea (School of Business, Ewha Womans University) ;
  • Min, Daiki (School of Business, Ewha Womans University)
  • 조나래 (이화여자대학교 경영학과) ;
  • 민대기 (이화여자대학교 경영학과)
  • Received : 2016.11.16
  • Accepted : 2017.03.06
  • Published : 2017.06.15
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Abstract

Emissions Trading System (ETS) is utilized in many countries, including South Korea, as an efficient policy to abate GHG (Greenhouse Gas) emissions. Grandfathering on the basis of historic emissions is used as the way to allocate permits in South Korea. It, however, has caused an increase in the emission permits and lack of equity. To overcome these drawbacks, we propose an alternative DEA model for centralized allocation of emission abatement to evaluate the amount of emissions abatement by company based on the energy efficiency. In addition, an empirical analysis of 36 assigned companies for ETS in Korean metal industry is conducted to validate the feasibility of the proposed model. The result of the analysis shows that energy-efficient companies achieve reduced target of the emissions abatement and companies with low energy efficiency score are turned out to have contrary outcome, against the result of applying Grandfathering.

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