Abstract

The allocation of pollution rights is significant to the economic development of a region, which determines the industrial structure of the region in another way. This study established an allocation model based on fuzzy coalition game theory. Formation of fuzzy coalitions between many producers in a region and reallocation of pollution discharge rights in the region through these coalitions was used to increase the total production value of the region while total pollution discharge amount is constant. At the same time, the fuzzy Shapley value method was used to allocate benefits obtained from the cooperation to the participants in various coalitions. This model was validated by its application in the case of three production bases near the Shizi channel in Dongguan city for reallocation of pollution discharge rights. Results showed that this model could increase the coalition benefits of the three production bases in this region, which observed increases of 4.28%, 7.74%, and 13.98%, respectively.

Highlights

  • With urbanization and rapid economic growth, water pollution in China has become increasingly serious

  • Since reducing pollution discharge, scientific and reasonable allocation of amount of pollutant discharge, and other environmental management policies involving the vested interests of various local governments, regional companies, or groups, this has caused the problem of water environmental pollution control and management to become complex

  • This study established a pollution discharge rights–profit allocation model based on fuzzy coalition game theory

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Summary

Introduction

With urbanization and rapid economic growth, water pollution in China has become increasingly serious. Since reducing pollution discharge, scientific and reasonable allocation of amount of pollutant discharge, and other environmental management policies involving the vested interests of various local governments, regional companies, or groups, this has caused the problem of water environmental pollution control and management to become complex. To effectively solve this problem, many researchers have used game theory, which is a powerful tool to analyse and solve contradictory conflicts. Game theory is used in research to analyse and solve reduction and allocation of discharge amount and other water environmental management conflicts. The focus of pollution discharge rights research is on how to fairly and reasonably allocate limited environmental capacity usage rights to each polluter in practice

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