Cost allocation of river water quality management based on the Separable Cost Remaining Benefit (SCRB) method

Kyudong Yeo and Younghun Jung

Journal of Environmental Planning and Management, 2016, vol. 59, issue 6, 1040-1053

Abstract: This paper presents a cost allocation method that applies the cooperative game theory and the Separable Costs Remaining Benefit method to a project that involves two local governments in water quality management in South Korea. The total project cost was estimated by using a parametric estimation method for reduction loads in accordance with the Total Pollution Load Management system. As a result, the cost allocation ratios between the City of Gwangju and Jeonnam Province are suggested to be 69.85% and 30.15% of the total project cost. The final cost allocation confirms the benefits to both governments and illustrates the cooperative game theory.

Date: 2016
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DOI: 10.1080/09640568.2015.1053561

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