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Sharing the Costs of Complex Water Projects: Application to the West Delta Water Conservation and Irrigation Rehabilitation Project, Egypt.

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Date
2016
Dewey
Economie de la terre et des ressources naturelles
Sujet
water project; cost allocation; cooperative game; Shapley Value; sustainability; stability; Egypt; West Delta
JEL code
H.H4.H43; Q.Q5.Q58; Q.Q1.Q15
Journal issue
Games
Volume
7
Number
3
Publication date
07-2016
Article pages
23
DOI
http://dx.doi.org/10.3390/g7030018
URI
https://basepub.dauphine.fr/handle/123456789/15970
Collections
  • LAMSADE : Publications
Metadata
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Author
Moretti, Stefano
989 Laboratoire d'analyse et modélisation de systèmes pour l'aide à la décision [LAMSADE]
Patrone, Fioravante
status unknown
Dinar, Ariel
17255 University of California
Abdel-Dayem, Safwat
Type
Article accepté pour publication ou publié
Abstract (EN)
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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