Cooperative Game Theory and its Application to Natural, Environmental, and Water Resource Issues : 3. Application to Water Resources

This paper reviews various applications of cooperative game theory (CGT) to issues of water resources. With an increase in the competition over various water resources, the incidents of disputes have been in the center of allocation agreements. The paper reviews the cases of various water uses, such as multi-objective water projects, irrigation, groundwater, hydropower, urban water supply, wastewater, and transboundary water disputes. In addition to providing examples of cooperative solutions to allocation problems, the conclusion from this review suggests that cooperation over scarce water resources is possible under a variety of physical conditions and institutional arrangements. In particular, the various approaches for cost sharing and for allocation of physical water infrastructure and flow can serve as a basis for stable and efficient agreement, such that long-term investments in water projects are profitable and sustainable. The latter point is especially important, given recent developments in water policy in various countries and regional institutions such as the European Union (Water Framework Directive), calling for full cost recovery of investments and operation and maintenance in water projects. The CGT approaches discussed and demonstrated in this paper can provide a solid basis for finding possible and stable cost-sharing arrangements.

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Bibliographic Details
Main Authors: Parrachino, Irene, Dinar, Ariel, Patrone, Fioravante
Format: Policy Research Working Paper biblioteca
Language:English
en_US
Published: World Bank, Washington, DC 2006-11
Subjects:ALLOCATION AGREEMENTS, ALLOCATION OF WATER, CONSTRUCTION, COST RECOVERY, COST SHARING, DAMS, DEMAND OF WATER, ECONOMICS, ECONOMIES OF SCALE, ENVIRONMENTAL, ENVIRONMENTAL ISSUES, ENVIRONMENTAL RESOURCES, EXPENDITURES, FARMS, FLOOD CONTROL, GRAVITY, GROUNDWATER, GROUNDWATER DEVELOPMENT, HYDROELECTRIC POWER, HYDROLOGY, INCOME, INCOME DISTRIBUTION, INTERNATIONAL WATER, IRRIGATION, IRRIGATION SYSTEMS, IRRIGATION WATER, IRRIGATION WATER SUPPLY, IRRIGATORS, MARGINAL COST, MUNICIPALITIES, NATURAL RESOURCES, NEGATIVE EXTERNALITIES, PIPES, PRICE OF WATER, PRODUCERS, PUBLIC WORKS, PUMPS, QUANTITY OF WATER, QUOTAS, RIVER BASIN, RIVER BASIN COMMITTEE, SAVINGS, SCARCE WATER, SCARCE WATER RESOURCES, SERVICE FEE, SIDE PAYMENTS, STORMWATER, URBAN WATER, URBAN WATER SUPPLY, URBAN WATER SYSTEMS, USE OF WATER, WASTEWATER, WASTEWATER TREATMENT, WASTEWATER TREATMENT FACILITIES, WATER BASINS, WATER CONSUMPTION, WATER DEMAND, WATER DISTRICT, WATER FACILITIES, WATER INFRASTRUCTURE, WATER MARKETS, WATER POLICY, WATER POLLUTION, WATER PROJECTS, WATER QUALITY, WATER RESOURCE, WATER RESOURCES, WATER RESOURCES DEVELOPMENT, WATER RESOURCES MANAGEMENT, WATER RIGHTS, WATER SCARCITY, WATER SECTOR, WATER SOURCE, WATER SUPPLY FACILITIES, WATER SUPPLY SYSTEM, WATER SUPPLY SYSTEMS, WATER SYSTEMS, WATER USES,
Online Access:http://documents.worldbank.org/curated/en/2006/11/7216786/cooperative-game-theory-application-natural-environmental-water-resource-issues-3-application-water-resources
http://hdl.handle.net/10986/8848
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