Initial allocation of SO2 emission rights based on the combination weighting method: evidence from China's thermal power plants.

Ying Qu,Yingmin Yuan,Yusha Li,Lingling Guo

doi:10.1007/s11356-021-15745-x

Abstract

Emission trading system is an effective market-oriented means to control pollutant emission, and reasonable initial allocation of emission rights is the premise of its smooth implementation. However, at present, the initial allocation of emission rights depends largely on the amount of emissions, which leads to weak positive guidance effect for enterprises. To explore the optimal initial allocation method of SO2 emission rights, this paper takes 8 thermal power plants in Dalian, China, as the research objects to calculate the initial allocation of SO2 emission rights, because SO2 is the main cause of acid rain, which is one of the most serious air pollution in China, and thermal power plants are among the main SO2 emitters. Firstly, an indicator system is established considering enterprise size, pollutant discharge, and social contributions, as well as pollution control capacity. Then, the combination weighting method is developed through integrating the subjective methods G1 and G2 with the objective ones, entropy and maximum deviation. The empirical results show that the enterprises with more desulfurization equipment or large heating supply are supposed to get more emission rights; the actual emission value of SO2 in half of the enterprises exceeds the theoretical ones; SO2 removal rate, desulfurization equipment quantity, and heating supply exert the most positive effects on the initial allocation of emission rights. The constructed model can be used as a reference for future research of initial allocation of other pollutants' emission rights. Also, the implications have been proposed for the government, industry, and enterprises.

Highlights

The rapid development of China’s economy consumed a large amount of energy, which significantly increased in emissions of CO2, SO2, particulate matter (Zeng et al 2019; Luo et al 2019)
Because of the aggravation of the greenhouse effect, most existing research focuses on CO2 emission rights, while research on SO2 emission rights is relatively underrepresented
In the process of the allocation of SO2 emission rights, the first-level government determines the total amount of emissions according to the local economic and environmental conditions; this amount is allocated to the second-level government, and from there to each enterprise according to its size and characteristics

Summary

Introduction

The rapid development of China’s economy consumed a large amount of energy, which significantly increased in emissions of CO2, SO2, particulate matter (Zeng et al 2019; Luo et al 2019). Prominent examples are e.g., banning small thermal power plants, strengthening cleaner production audits, and promoting clean energy (Li et al 2013; He et al 2016) Among these measures, the emission trading system has become the favorite pollution control policy, since it realizes the pollution reduction at the lowest cost (Lin et al 2011; Tang et al 2020). The implementation of a SO2 emission trading system exerts a significant effect on the SO2 emission control; there is still a long way to go (Shin 2013) It is meaningful both for theory and praxis to develop a reasonable mechanism for the initial allocation of SO2 emission rights (Ji et al 2017; Lee 2019)

Methods

Results

Conclusion