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Games 2016, 7(3), 18; doi:10.3390/g7030018

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

1
CNRS UMR7243 and Laboratoire d’Analyse et Modélisation de Systèmes pour l’Aide à la Décision (LAMSADE), Paris-Dauphine University, Paris 75775, France
2
University of Genoa, Genoa 16126, Italy
3
School of Public Policy, University of California, Riverside, CA 92506, USA
4
National Research Center, Cairo 12622, Egypt
*
Author to whom correspondence should be addressed.
Academic Editors: Karl Tuyls and Simon Parsons
Received: 23 February 2016 / Revised: 17 June 2016 / Accepted: 4 July 2016 / Published: 15 July 2016
(This article belongs to the Special Issue Real World Applications of Game Theory)
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Abstract

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. View Full-Text
Keywords: water project; cost allocation; cooperative game; Shapley Value; sustainability; stability; Egypt; West Delta water project; cost allocation; cooperative game; Shapley Value; sustainability; stability; Egypt; West Delta
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Moretti, S.; Patrone, F.; Dinar, A.; Abdel-Dayem, S. Sharing the Costs of Complex Water Projects: Application to the West Delta Water Conservation and Irrigation Rehabilitation Project, Egypt. Games 2016, 7, 18.

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