“…Other models are primarily concerned with fairness and equity issues and aim to share the resource (Kampas and White, 2003). Yet other models combine both elements of sharing and optimisation (Vesterdal and Svendsen, 2004).…”
Section: Decision Models For Resource Allocationmentioning
“…Other models are primarily concerned with fairness and equity issues and aim to share the resource (Kampas and White, 2003). Yet other models combine both elements of sharing and optimisation (Vesterdal and Svendsen, 2004).…”
Section: Decision Models For Resource Allocationmentioning
“…2 The issue of transactions costs is treated in Kampas and White (2002) while permit trading is examined in Kampas and White (2003a) and the implications of different probabilistic constraints on permitted emissions are considered in Kampas and White (2003b). Kampas and White (2004) combines both probabilistic constraints and administrative costs within a single framework.…”
“…Although no different contributions have been made to improve the efficiency of a reduction in the discharge of pollutants by different initial distribution methods, they have a major impact on the fairness of distribution (Kampas and White 2003). Therefore, some scholars have proposed establishing distribution standards; this process involves a series of indicators, each of a reasonable weight, in which permit distribution volume is directly proportional to the integrated indicator value (Bohm and Larsen 1994), such as the level of discharge by polluters, economic considerations, population, land areas, etc.…”
Regional allowance allocation not only matters for regional economic efficiency but also for fairness between regions or companies. It is important to work out a fair and reasonable allocation method to achieve China's goal of the gross control of pollutant discharge. This research developed an equity-based optimisation for a regional water pollutant discharge allowance allocation method, which is based on the Gini coefficient of considering socio-economic and environmental factors. Taking the Tai Lake Basin in Jiangsu Province as an example, this paper optimised the present state of distribution on the basis of an assessment of fairness of the current discharge allowance allocation status. The optimised allowance allocation results of the Tai Lake Basin were distinct from other allocation methods, and reduced the inequity of regional allowance allocation. However, the stress of equity cannot give full consideration to both environmental and economic efficiency targets. Connecting the allocation of discharge targets with an emission trading system was proposed to address the shortcomings of the Gini coefficient based method.
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