Optimization of Pollutant Discharge Permits, Using the Trading Ratio System: A Case Study

Water quality management of rivers is one of the challenges in the analysis of water resource systems. The optimal operation of the pollutant carrying capacity of these systems provides significant economic value and could reduce treatment costs. In this study, the application of the trading ratio system is investigated to control the cost of pollutants in a river and make a fair deal. In this regard, transfer coefficients between pollution sources, along with the trade coefficients, are determined, considering the system limitations and each pollutant’s contaminant impact. To provide allowable limits of river water quality concentrations, the total cost of all sources and the system is minimized, using the linear programming method. Finally, the new trading discharge permits are calculated for each source. The proposed method is successfully applied to Dez River as a case study. Results show that using a trading ratio system could maintain water quality at a standard level containing economic benefits for the participants of this program.