A novel allocation method of regional carbon allowance in building sector: Perspective from coupling equity and efficiency.

Equitable and effective allocation of provincial carbon allowances is the key to achieving carbon peaking and carbon neutrality targets and addressing the prominent issue of resource and environmental constraints, while reasonable coupling of equity and efficiency is its prerequisite. The study first assessed the effectiveness of the mainstream allocation methods when applied to the building sector. Then, Monte Carlo simulation is used to properly couple the principles of equity and efficiency in the process of carbon allowance allocation in the building sector, and on this basis, a novel Allocation method of Regional Carbon Allowance in Building sector (ARCAB) is constructed to provide an inter-provincial allocation scheme of building carbon emission allowances in 2030 for China. The results show that the mainstream allocation methods are not applicable to the building sector, and their allocation results often appear the phenomenon of "low-hanging fruit" or "high-hanging fruit". In addition, the coupling degree of equity-efficiency is 12% in China's 2030 allocation scheme, indicating that provincial governments should formulate more stringent carbon reduction policies to achieve this goal. The proposed ARCAB and our findings can assist decision-makers to formulate reasonable carbon allowances and differentiated emission-reduction strategies and will be of national and global significance. • Propose the criteria to judge the effectiveness of building carbon allowances. • Mainstream carbon allowance allocation methods do not apply to the building sector. • Propose an Allocation method of Regional Carbon Allowance in Building sector (ARCAB). • Focus on carbon reduction in commercial buildings in China. [ABSTRACT FROM AUTHOR]