The aim of this paper is to discuss some degenerate hyperbolic equation ut + ψ(u)x = 0,whereψ∈C1(R\{0})∩C2(R\{0})is a nondecreasing function in R, where R = (-∞, +∞). Some entropy inequalities are obtained and can be applied to study the existence of local BV solutions of the above equation with local finite measures as initial conditions.