Basin-wide cooperative water resources allocation

Lizhong Wang, Liping Fang and Keith W. Hipel

European Journal of Operational Research, 2008, vol. 190, issue 3, 798-817

Abstract: The Cooperative Water Allocation Model (CWAM) is designed within a general mathematical programming framework for modeling equitable and efficient water allocation among competing users at the basin level and applied to a large-scale water allocation problem in the South Saskatchewan River Basin located in southern Alberta, Canada. This comprehensive model consists of two main steps: initial water rights allocation and subsequent water and net benefits reallocation. Two mathematical programming approaches, called the priority-based maximal multiperiod network flow (PMMNF) method and the lexicographic minimax water shortage ratios (LMWSR) technique, are developed for use in the first step. Cooperative game theoretic approaches are utilized to investigate how the net benefits can be fairly reallocated to achieve optimal economic reallocation of water resources in the second step. The application of this methodology to the South Saskatchewan River Basin shows that CWAM can be utilized as a tool for promoting the understanding and cooperation of water users to achieve maximum welfare in a river basin and minimize the potential damage caused by water shortages, through water rights allocation, and water and net benefit transfers among water users under a regulated water market or administrative allocation mechanism.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:190:y:2008:i:3:p:798-817

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