An allocation analysis of regional carbon emissions reduction responsibility of the Philippine power industry: An application of cooperative game theory
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ID: 286828
2025
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Abstract
Greenhouse gas emissions are a major contributor to global warming, with a significant portion originating from the Philippine power industry. One approach to mitigating this issue is through the implementation of carbon taxation and emissions trading schemes. A fundamental first step in designing such policies is the identification of an equitable allocation plan of Carbon Emissions Reduction Responsibility (CERR). This study clusters the 17 regions of the Philippines into four Super Regions (SRs) based on proximity and applies cooperative game theory—specifically, the Myerson value—to determine CERR allocation. Using 2022 data from the Department of Energy, the findings indicate that regions IV-A, IV-B, V, and NCR bear the highest CERR due to their high power consumption and limited clean renewable energy capacity. The Visayas and Mindanao regions on the other hand have negative shares of CERR due to the abundance of clean energy supply that exceeds power demand. Beyond allocation, CERR has potential applications in tracking the effectiveness of environmental policies on renewable energy adoption and in shaping a fairer carbon taxation framework. Future research can explore how CERR evolves over time and its role in incentivizing sustainable energy transitions.
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| Authors | Alarcon, John Rolan Dela Cruz |
| Journal | Malay Journal |
| Year | 2025 |
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| Keywords | Keywords not found |
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