Optimal allocation and transaction of waste load permits for transboundary basin: A Bi-level programming approach based on node-arc

Abstract

Inadequate water quality exacerbates global water resources scarcity. Hence, water quality of the river basin is increasingly perceived as a global obstacle to sustainable development because of the limited water carrying capacity. Efficient waste load permits (WLPs) allocation plays a critical role in enhancing water quality by controlling the emission cap. Considering transboundary water pollution and transaction among regions, a bi-level objective model is proposed to analyze the WLPs allocation based on the node-arc method. Motivated by alleviating regional development differences, the watershed management committee concentrates on equitable distribution of WLPs to regions. Furthermore, regional authorities focus on how to guarantee the maximum economic development and balance the WLPs emissions from the municipal, industrial, and agricultural sectors. Practicality and efficiency of the constructed model is demonstrated by applying it to Tuojiang River Basin. Through the analysis of the results, three management recommendations are proposed for Tuojiang River: strengthening the prevention of agricultural non-point source pollution, sticking to the cooperation between upstream and downstream regions, and speeding up the construction of sewage environmental tax system. The results illustrate that as the proposed method can control the total amount of sewage, it could provide decision-making references for the amelioration of water environment.

Keywords: Allocation and transaction; Bi-level optimization; Equity and efficiency; Node-arc method; Waste load permits.