Abstract
This paper aims to address the problem of allocating the CO
2
emissions quota set by government goal in Chinese manufacturing industries to different Chinese regions. The CO
2
emission reduction is conducted in a three-stage phases. The first stage is to obtain the total amount CO
2
emission reduction from the Chinese government goal as our total CO
2
emission quota to reduce. The second stage is to allocate the reduction quota to different two-digit level manufacturing industries in China. The third stage is to further allocate the reduction quota for each industry into different provinces. A new inverse data envelopment analysis (InvDEA) model is developed to achieve our goal to allocate CO
2
emission quota under several assumptions. At last, we obtain the empirical results based on the real data from Chinese manufacturing industries.