Sulfur Dioxide Initial Emissions Allocation Equity Research

The distribution of the initial emission permits directly influences the realization ofSewage volume target and the market operation of emission trading. A fair, rational andscientific allocation of initial emissions permits is always the academic dispute issues. Thispaper takes the initial distribution of SO₂emission permits in Hubei province as an exampleand investigates the fairness of initial emission permits distribution.Through the study of domestic and international initial emissions allocation method, thepaper chooses Gini coefficient method and the information entropy comprehensive distributionmethod as the initial emissions allocation methods based on the distribution principle of fair andefficiency.From the angle of fairness principle, this paper makes up four evaluation indexes: thepopulation, GDP, technical transformation cost and floor area. This four evaluation indexes areused for the initial emission permits and fair evaluation of SO₂in Hubei province.In this paper the Gini coefficient method evaluates the results of SO₂distribution in2009and2010of Hubei province. The results show that in2009the criteria Gini coefficient ofpopulation, GDP and technical transformation cost is in a relatively fair state while floor area’sGini coefficient is in a relatively unfair state. In2010, the criteria Gini coefficient of population,GDP and technical transformation cost is in a relatively fair state while floor area’s Ginicoefficient is in a larger unfair state. The Gini coefficient of2010has a different degree ofincrease compared with2009. So the inequality distribution of SO₂is increase.In this paper SO₂emissions are distributed by the information entropy comprehensivedistribution method in2010of Hubei province. The result shows that the Gini coefficient ofpopulation is in a fair condition while criteria Gini coefficient of GDP, technical transformationcost and floor area three is in a relatively fair state. This proves that the information entropycomprehensive distribution method is a fair allocation methods and the selection of this fourevaluation index is also feasible. In some areas, there is a substantial gap between theory valueand the actual share distribution. This provides reference value for improving the fairness ofSO₂initial emission permits in Hubei province.This paper puts forward a method of adjusting distribution according the problem of thebig floor area’s Gini coefficients in2010. After the adjustment the distribution of fourevaluation index’s Gini coefficient have a certain improvement. This shows that this adjustmentmethod is feasible.