The application of environmental Gini coefficient (EGC) in allocating wastewater discharge permit: The case study of watershed total mass control in Tianjin, China

Abstract The allocation of wastewater discharge permit is always a challenge in total mass control due to the conflicts between environmental equality and efficiency. In this article, we introduce a framework to allocate discharge permit by using Gini coefficient, a widely used index of income inequality in economics. The environmental Gini coefficient (EGC) method is based on a multi-criteria system, including land area, population, gross domestic product (GDP), and environmental capacity. The allocation of chemical oxygen demand (COD) in the watershed at Tianjin, China is chosen as a case study to illustrate the application of this framework. The results show that the EGC method can provide a profound insight for environmental management with a focus on balance of environmental equality and efficiency for the policy-makers, especially in developing countries.

[1]  Erwin H. Bulte,et al.  Income inequality and the environment: aggregation bias in environmental Kuznets curves , 2001 .

[2]  Arne Sandström,et al.  Measuring Income Inequality , 1983 .

[3]  S. Kverndokk Tradeable CO2 Emission Permits: Initial Distribution as a Justice Problem , 1995, Environmental Values.

[4]  Thomas Seegmuller,et al.  Optimal Cycles and Social Inequality: What Do We Learn from the Gini Index? , 2006 .

[5]  John Hutton,et al.  Allocation of carbon permits within a country: a general equilibrium analysis of the United Kingdom , 2001 .

[6]  Nick Hanley,et al.  A Permit Allocation Contest for a Tradable Pollution Permit Market , 2008 .

[7]  N. Barr Economics of the Welfare State , 1987 .

[8]  The Effect of Using Grouped Data on the Estimation of the Gini Income Elasticity , 2003 .

[9]  D. Kammen,et al.  Letting the (energy) Gini out of the bottle: Lorenz curves of cumulative electricity consumption and Gini coefficients as metrics of energy distribution and equity , 2005 .

[10]  Luisito Bertinelli,et al.  Economic development and environmental quality: A reassessment in light of nature's self-regeneration capacity , 2008 .

[11]  Thomas J. White,et al.  Sharing resources: The global distribution of the Ecological Footprint , 2007 .

[12]  P. Bohm,et al.  Fairness in a tradeable-permit treaty for carbon emissions reductions in Europe and the former Soviet Union , 1994 .

[13]  Ottar Mæstad Allocation of emission permits with leakage through capital markets , 2007 .

[14]  Gene Bazan Our Ecological Footprint: Reducing Human Impact on the Earth , 1997 .

[15]  Adam Rose,et al.  The efficiency and equity of marketable permits for CO2 emissions , 1993 .

[16]  Robert N. Stavins,et al.  What Can We Learn from the Grand Policy Experiment? Lessons from SO2 Allowance Trading , 1998 .

[17]  Tobias N. Rasmussen,et al.  Allocation of CO2 Emissions Permits: A General Equilibrium Analysis of Policy Instruments , 2000 .

[18]  John Norregaard,et al.  Taxes and Tradable Permits as Instruments for Controlling Pollution Theory and Practice , 2000, SSRN Electronic Journal.

[19]  中華人民共和国国家統計局 China statistical yearbook , 1988 .

[20]  Ian Moffatt,et al.  Ecological footprints and sustainable development , 2000 .

[21]  Y. Saboohi An evaluation of the impact of reducing energy subsidies on living expenses of households , 2001 .

[22]  Ben White,et al.  Selecting permit allocation rules for agricultural pollution control: a bargaining solution , 2003 .

[23]  S. Kuznets Economic Growth and Income Inequality , 2019, The Gap between Rich and Poor.

[24]  Hequn Yang,et al.  Spatiotemporal analysis of ecological footprint and biological capacity of Gansu, China 1991–2015: Down from the environmental cliff , 2006 .

[25]  Christoph Böhringer,et al.  On the Design of Optimal Grandfathering Schemes for Emission Allowances , 2005 .

[26]  A. Druckman,et al.  Measuring resource inequalities: The concepts and methodology for an area-based Gini coefficient , 2008 .

[27]  Adam Rose,et al.  Income distribution impacts of climate change mitigation policy in the Susquehanna River Basin Economy , 2007 .

[28]  George T H Ellison,et al.  Letting the Gini out of the bottle? Challenges facing the relative income hypothesis. , 2002, Social science & medicine.

[29]  Stefan Seifert,et al.  Banning banking in EU emissions trading , 2004 .

[30]  Peter Cramton,et al.  Tradeable Carbon Permit Auctions: How and Why to Auction Not Grandfather , 2002 .

[31]  W. Beckerman,et al.  The equitable international allocation of tradable carbon emission permits , 1995 .