Provincial Carbon Quota Allocation of China's Iron and Steel Industry

This technical report examines the allocation of carbon quotas in China's iron and steel industry, focusing on achieving the 2030 carbon peak target. It constructs three provincial carbon quota allocation schemes using the entropy method, three-stage DEA, and ZSG-DEA model, addressing fairness, efficiency, and sustainability. The findings indicate that the entropy method effectively mitigates the uneven distribution of carbon quotas across provinces, revealing a trend where carbon quotas decrease from eastern to western regions. The report emphasizes the necessity of adjusting initial carbon quota allocations based on local government competition and urbanization levels to enhance participation from underdeveloped areas. Furthermore, it highlights that while the combined entropy and ZSG-DEA model improves allocation efficiency, it may favor economically developed regions. The report underscores the importance of a scientifically sound allocation strategy to delineate carbon reduction responsibilities among provinces, contributing to China's broader environmental goals.