Sharing the Costs of Complex Water Projects: Application to the West Delta Water Conservation and Irrigation Rehabilitation Project, Egypt.
Moretti, Stefano; Patrone, Fioravante; Dinar, Ariel; Abdel-Dayem, Safwat (2016), Sharing the Costs of Complex Water Projects: Application to the West Delta Water Conservation and Irrigation Rehabilitation Project, Egypt., Games, 7, 3, p. 23. 10.3390/g7030018
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Laboratoire d'analyse et modélisation de systèmes pour l'aide à la décision [LAMSADE]
University of California
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.
Subjects / Keywordswater project; cost allocation; cooperative game; Shapley Value; sustainability; stability; Egypt; West Delta
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