Allocation of SO2 Emission Rights in City Agglomerations Considering Cross-Border Transmission of Pollutants: A New Network DEA Model

Xianhua Wu ()
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Xianhua Wu: Shanghai Maritime University, School of Economics and Management

Chapter 16 in Environmental Disaster in China, 2026, pp 477-518 from Springer

Abstract: Abstract Currently SO2 emission rights are allocated without considering the cross-border transmission characteristics of pollutants, and the allocation scheme cannot reflect the fact that air pollutant overflows in space. In this paper, the WRF (Weather Research and Forecasting Model)-CMAQ (Community Multiscale Air Quality) is combined with the data envelopment analysis (DEA) allocation model for the first time, and a two-stage (Stage-1: SO2 formation, Stage-2: SO2 treatment) network DEA allocation model is proposed with the SO2 spatial transmission taken as the intermediate output or input index between decision-making units. Based on the principles of efficiency, economic protection and fairness, the model is applied to the study of SO2 emission rights allocation in the Yangtze River Delta city agglomeration with high homogeneity in China. The results show that: (1) When the weight coefficient (α1) in stage-1 is 0.7, 0.8 or 0.9, the per capita relative deprivation coefficient (PRDC) of each decision-making unit (DMU) is less than 0.5 in the allocation scheme, indicating that our scheme can be used as a reference to allocate emission rights in the Yangtze River Delta city agglomeration. (2) With great robustness and universality, our allocation model allows decision-makers to adjust the GDP constraint coefficient and the weight coefficients in the two stages according to their preferences, so as to obtain the optimal allocation results. The model proposed in this paper can help decision-makers to formulate effective policies to reduce pollutant emission, and promote energy conservation & emission reduction and coordinate environmental governance in regions of city agglomerations.

Keywords: SO2 emission quota allocation; WRF-CMAQ; Two-stage system; Network data envelopment analysis; Per capital relative deprivation coefficient (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1007/978-981-92-0910-1_16

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