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Sharing the costs of cleanup polluted river: Upstream compensation method

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  • Hou, Dongshuang
  • Sun, Panfei
  • Yang, Guangjing

Abstract

This article proposes one new allocation called upstream compensation method (UCM, for short) for the polluted river cleanup cost, based on two doctrines in international disputes. We explain the fairness of the method by showing the coincidence of UCM method and the Shapley value. On the other, by studying the concavity of the induced game, we illustrate the stability of UCM.

Suggested Citation

  • Hou, Dongshuang & Sun, Panfei & Yang, Guangjing, 2020. "Sharing the costs of cleanup polluted river: Upstream compensation method," Economics Letters, Elsevier, vol. 195(C).
    • Handle: RePEc:eee:ecolet:v:195:y:2020:i:c:s0165176520302901
    DOI: 10.1016/j.econlet.2020.109473
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    References listed on IDEAS

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    1. Baomin Dong & Debing Ni & Yuntong Wang, 2012. "Sharing a Polluted River Network," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(3), pages 367-387, November.
    2. van den Brink, René & He, Simin & Huang, Jia-Ping, 2018. "Polluted river problems and games with a permission structure," Games and Economic Behavior, Elsevier, vol. 108(C), pages 182-205.
    3. Ni, Debing & Wang, Yuntong, 2007. "Sharing a polluted river," Games and Economic Behavior, Elsevier, vol. 60(1), pages 176-186, July.
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    Cited by:

    1. Wu, Hao & van den Brink, René & Estévez-Fernández, Arantza, 2024. "Highway toll allocation," Transportation Research Part B: Methodological, Elsevier, vol. 180(C).
    2. Sylvain Béal & David Lowing & Léa Munich, 2024. "Sharing the cost of cleaning up non-point source pollution," Working Papers 2024-13, CRESE.
    3. Dongshuang Hou & Qianqian Kong & Xia Zhang & Hao Sun, 2021. "Adjacent Downstream Compensation Method of Sharing Polluted Rivers," Group Decision and Negotiation, Springer, vol. 30(1), pages 251-265, February.
    4. Shivshanker Singh Patel & Parthasarathy Ramachandran, 2022. "A bargaining model for sharing water in a river with negative externality," OPSEARCH, Springer;Operational Research Society of India, vol. 59(2), pages 645-666, June.
    5. Hao Wu & Rene van den Brink & Arantza Estevez-Fernandez, 2022. "Highway toll allocation," Tinbergen Institute Discussion Papers 22-036/II, Tinbergen Institute.
    6. Dongshuang Hou & Yifan Feng & Panfei Sun & Hao Sun, 2024. "Sharing the cost of the polluted river: a class of bilateral compensation methods," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 46(4), pages 1241-1264, December.

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