Sharing the Costs of Complex Water Projects: Application to the West Delta Water Conservation and Irrigation Rehabilitation Project, Egypt
Effective sharing mechanisms of joint costs among beneficiaries of a project are a fundamental requirement for the sustainability of the project. Projects that are heterogeneous both in terms of the landscape of the area under development or the participants (users) lead to a more complicated set of...
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MDPI AG
2016-07-01
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Series: | Games |
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Online Access: | http://www.mdpi.com/2073-4336/7/3/18 |
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author | Stefano Moretti Fioravante Patrone Ariel Dinar Safwat Abdel-Dayem |
author_facet | Stefano Moretti Fioravante Patrone Ariel Dinar Safwat Abdel-Dayem |
author_sort | Stefano Moretti |
collection | DOAJ |
description | Effective sharing mechanisms of joint costs among beneficiaries of a project are a fundamental requirement for the sustainability of the project. Projects that are heterogeneous both in terms of the landscape of the area under development or the participants (users) lead to a more complicated set of allocation mechanisms than homogeneous projects. The analysis presented in this paper uses cooperative game theory to develop schemes for sharing costs and revenues from a project involving various beneficiaries in an equitable and fair way. The proposed approach is applied to the West Delta irrigation project. It sketches a differential two-part tariff that reproduces the allocation of total project costs using the Shapley Value, a well-known cooperative game allocation solution. The proposed differential tariff, applied to each land section in the project reflecting their landscape-related costs, contrasts the unified tariff that was proposed using the traditional methods in the project planning documents. |
first_indexed | 2024-12-11T05:35:34Z |
format | Article |
id | doaj.art-9e158eed543c46a8bbb19112eff3327e |
institution | Directory Open Access Journal |
issn | 2073-4336 |
language | English |
last_indexed | 2024-12-11T05:35:34Z |
publishDate | 2016-07-01 |
publisher | MDPI AG |
record_format | Article |
series | Games |
spelling | doaj.art-9e158eed543c46a8bbb19112eff3327e2022-12-22T01:19:18ZengMDPI AGGames2073-43362016-07-01731810.3390/g7030018g7030018Sharing the Costs of Complex Water Projects: Application to the West Delta Water Conservation and Irrigation Rehabilitation Project, EgyptStefano Moretti0Fioravante Patrone1Ariel Dinar2Safwat Abdel-Dayem3CNRS UMR7243 and Laboratoire d’Analyse et Modélisation de Systèmes pour l’Aide à la Décision (LAMSADE), Paris-Dauphine University, Paris 75775, FranceUniversity of Genoa, Genoa 16126, ItalySchool of Public Policy, University of California, Riverside, CA 92506, USANational Research Center, Cairo 12622, EgyptEffective sharing mechanisms of joint costs among beneficiaries of a project are a fundamental requirement for the sustainability of the project. Projects that are heterogeneous both in terms of the landscape of the area under development or the participants (users) lead to a more complicated set of allocation mechanisms than homogeneous projects. The analysis presented in this paper uses cooperative game theory to develop schemes for sharing costs and revenues from a project involving various beneficiaries in an equitable and fair way. The proposed approach is applied to the West Delta irrigation project. It sketches a differential two-part tariff that reproduces the allocation of total project costs using the Shapley Value, a well-known cooperative game allocation solution. The proposed differential tariff, applied to each land section in the project reflecting their landscape-related costs, contrasts the unified tariff that was proposed using the traditional methods in the project planning documents.http://www.mdpi.com/2073-4336/7/3/18water projectcost allocationcooperative gameShapley ValuesustainabilitystabilityEgyptWest Delta |
spellingShingle | Stefano Moretti Fioravante Patrone Ariel Dinar Safwat Abdel-Dayem Sharing the Costs of Complex Water Projects: Application to the West Delta Water Conservation and Irrigation Rehabilitation Project, Egypt Games water project cost allocation cooperative game Shapley Value sustainability stability Egypt West Delta |
title | Sharing the Costs of Complex Water Projects: Application to the West Delta Water Conservation and Irrigation Rehabilitation Project, Egypt |
title_full | Sharing the Costs of Complex Water Projects: Application to the West Delta Water Conservation and Irrigation Rehabilitation Project, Egypt |
title_fullStr | Sharing the Costs of Complex Water Projects: Application to the West Delta Water Conservation and Irrigation Rehabilitation Project, Egypt |
title_full_unstemmed | Sharing the Costs of Complex Water Projects: Application to the West Delta Water Conservation and Irrigation Rehabilitation Project, Egypt |
title_short | Sharing the Costs of Complex Water Projects: Application to the West Delta Water Conservation and Irrigation Rehabilitation Project, Egypt |
title_sort | sharing the costs of complex water projects application to the west delta water conservation and irrigation rehabilitation project egypt |
topic | water project cost allocation cooperative game Shapley Value sustainability stability Egypt West Delta |
url | http://www.mdpi.com/2073-4336/7/3/18 |
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