Sharing the costs of cleanup polluted river: Upstream compensation method

Dongshuang Hou, Panfei Sun and Guangjing Yang

Economics Letters, 2020, vol. 195, issue C

Abstract: This article proposes one new allocation called upstream compensation method (UCM, for short) for the polluted river cleanup cost, based on two doctrines in international disputes. We explain the fairness of the method by showing the coincidence of UCM method and the Shapley value. On the other, by studying the concavity of the induced game, we illustrate the stability of UCM.

Keywords: Cooperative game; Cost allocation; Polluted river; Fairness; Shapley value (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:195:y:2020:i:c:s0165176520302901

DOI: 10.1016/j.econlet.2020.109473

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