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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Main Authors: Stefano Moretti, Fioravante Patrone, Ariel Dinar, Safwat Abdel-Dayem
Format: Article
Language:English
Published: MDPI AG 2016-07-01
Series:Games
Subjects:
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.
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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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