An Analytical Approach for Initial Allocation of Discharge Permits with Consideration of the Water Environmental Capacity and Industrial Technical Feasibility

Kun Lei,Bo Peng

doi:10.3390/su132413743

Abstract

The tradable discharge permit is an efficient marketing twist to deal with negative externality of water pollution, and initial allocation discharge permits (IADP) is a tough prerequisite for a health tradable discharge permit system. However, the allocation rules focusing on both water environment quality attainment and economic-technical feasibility have not been achieved. Therefore, a three-tier analytical framework including control units, industries, and enterprises has been established for satisfying the requirements of water environment quality attainment and technical feasibility. The framework includes three calculation modules and one justification module. A case study of the framework is carried out in the Changzhou City of Taihu Lake, China. Through comparison of the results of industry IADP, the technology-based initial allocation discharge permits scheme in control unit 7 is adopted as the final initial allocation discharge permits scheme, and the reduction plan chemical industry is carried out in control unit 8; finally, the initial allocation discharge permits results after reduction are employed as the final initial allocation discharge permits scheme. This three-tier analytical framework could ensure environmental protection, equality, efficiency, and make the scheme be more acceptable for enterprise stakeholders. In addition, it could support for optimization of industrial layouts and industrial structure upgrading to some degree.

Highlights

The tradable discharge permit (TDP) has been adopted as an efficient marketing twist to deal with the negative externality of water pollution in many regions caused by the rapid economic and demographic growth [1,2,3]
The purpose of this study is to show the process of the three-tier analytical approach for initial allocation of discharge permits (IADP); there is no need to analyze all the industry types
In order to achieve the control of main pollution sources, the two enterprises which are the main pollution sources are adopted as typical enterprises for IADP research in control unit 7 and 8, separately (Table 3)

Summary

Introduction

The tradable discharge permit (TDP) has been adopted as an efficient marketing twist to deal with the negative externality of water pollution in many regions caused by the rapid economic and demographic growth [1,2,3]. It was implemented in the management of atmospheric pollution and water pollution in the United States after Dales (1968) first promoted the concept of TDP in 1968 [4,5]. The approach of IADP includes two main categories: auction and grandfathering [7]. For the local wastewater pollutants, the polluters tend to obey this approach reluctantly due to the spare expense burden

Objectives

Methods

Results

Discussion

Conclusion