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

Author

Listed:
  • Stefano Moretti

    (CNRS UMR7243 and Laboratoire d’Analyse et Modélisation de Systèmes pour l’Aide à la Décision (LAMSADE), Paris-Dauphine University, Paris 75775, France)

  • Fioravante Patrone

    (University of Genoa, Genoa 16126, Italy)

  • Ariel Dinar

    (School of Public Policy, University of California, Riverside, CA 92506, USA)

  • Safwat Abdel-Dayem

    (National Research Center, Cairo 12622, Egypt)

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.

Suggested Citation

  • Stefano Moretti & Fioravante Patrone & Ariel Dinar & Safwat Abdel-Dayem, 2016. "Sharing the Costs of Complex Water Projects: Application to the West Delta Water Conservation and Irrigation Rehabilitation Project, Egypt," Games, MDPI, vol. 7(3), pages 1-23, July.
    • Handle: RePEc:gam:jgames:v:7:y:2016:i:3:p:18-:d:74069
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    References listed on IDEAS

    as
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