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Centralized resource allocation with technological progress under a meta-frontier framework: towards China's

Fei Yang¹, Haitao Xiong²

¹XUTELI School, Beijing Institute of Technology, Beijing, 100081, China.

Carbon Balance and Management

|June 28, 2026

Summary

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Optimizing China's resource allocation can boost economic growth and cut carbon emissions. A new data envelopment analysis (DEA) method enhances efficiency and target setting for sustainable development.

Area of Science:

Environmental Economics
Operations Research
Econometrics

Background:

Efficient resource allocation is vital for China's economic growth and carbon emission reduction goals.
Existing models often overlook technological heterogeneity and forward-looking efficiency targets.

Purpose of the Study:

To develop a novel centralized resource allocation approach integrating technological progress and heterogeneity.
To optimize China's energy-economy-emissions system for enhanced economic output and reduced environmental impact.

Main Methods:

A new data envelopment analysis (DEA) model is proposed, incorporating technological progress into the environmental production possibility set.
The model extends to a meta-frontier framework to address technological heterogeneity among decision-making units.

Keywords:

Centralized resource allocation DEA Technological heterogeneity Technological progress “Energy-economy-emission” optimization

Related Experiment Videos

The approach enhances forward-looking decision-making and incentive compatibility for target setting.

Main Results:

Optimal interprovincial allocation of energy and labor can increase aggregate economic output by 6.95% and reduce carbon emissions by 5,681.17 million tons.
Further optimization with incentives could boost 2024 economic output by 1.8% and cut emissions by 47.19%.
Significant labor misallocation exists between China's eastern and central regions.

Conclusions:

The proposed DEA method effectively optimizes resource allocation for economic and environmental goals in China.
Policy adjustments should balance economic development with emission reduction, considering regional labor misallocation.
The study provides managerial insights for improving resource allocation efficiency and sustainability.