Optimal treatment cost allocation methods in pollution control

Total emission control is an effective pollution control strategy. However, Chinese application of total emission control lacks reasonable and fair methods for optimal treatment cost allocation, a critical issue in total emission control. This paper considers four approaches to allocate treatment costs. The first approach is to set up a multiple-objective planning model and to solve the model using the shortest distance ideal point method. The second approach is to define degree of satisfaction for cost allocation results for each polluter and to establish a method based on this concept. The third is to apply bargaining and arbitration theory to develop a model. The fourth is to establish a cooperative N-person game model which can be solved using the Shapley value method, the core method, the Cost Gap Allocation method or the Minimum Costs Remaining Savings method. These approaches are compared using a practicable case study.