Fair allocation of wastewater discharge permits based on satisfaction criteria using data envelopment analysis

Allocating initial tradable pollutant permits (TPP) is an essential tool for controlling total wastewater discharge. Based on Max-min satisfaction, the data envelopment analysis (DEA) is applied for the achievement of TPP allocation. We divide 30 Chinese provinces into six regions to explore TPP allocation schemes and utilization rates through the comparison of allocated amount with the actual amount of TPP. Results demonstrate that: (1) the environmental efficiency of all provinces reaches Pareto efficiency after allocation; (2) the degree of satisfaction is relatively fair; (3) regions with higher environmental efficiency values are more likely to be allocated with full TPP matched with scale.