The Water Pricing Problem in a Complex Water Resources System: A Cooperative Game Theory Approach

G. M. Sechi (), R. Zucca () and P. Zuddas ()
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G. M. Sechi: University of Cagliari
R. Zucca: University of Cagliari
P. Zuddas: University of Cagliari

A chapter in Operations Research Proceedings 2010, 2011, pp 511-516 from Springer

Abstract: Abstract The research presents a methodology to allocate water services costs in a water resources system among water users using a Cooperative Game Theory approach based on the integral river basin modelling. The proposed approach starts from the characterization of the system to be modelled. The Decision Support System WARGI [7, 4, 6] is then used to achieve the best water system performances and to calculate the least cost of each one of the users’ coalitions that may arise using the resources. The cost allocation is evaluated by the Cooperative Game Theory methods. The aim of the work is to suggest a tool for decision makers to define water price policies in accordance with the sustainability and fairness principles settled by European Water Framework Directive [2].

Keywords: Cooperative Game; Grand Coalition; Water Price; Cost Allocation; Water Resource System (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:spr:oprchp:978-3-642-20009-0_81

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DOI: 10.1007/978-3-642-20009-0_81

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