IDEAS home Printed from https://ideas.repec.org/a/spr/orspec/v46y2024i4d10.1007_s00291-023-00738-8.html
   My bibliography  Save this article

Sharing the cost of the polluted river: a class of bilateral compensation methods

Author

Listed:
  • Dongshuang Hou

    (Northwestern Polytechnical University)

  • Yifan Feng

    (Northwestern Polytechnical University)

  • Panfei Sun

    (Northwestern Polytechnical University)

  • Hao Sun

    (Northwestern Polytechnical University)

Abstract

Water pollution is harmful to people’s health and causes great damage to ecology. Cleaning up pollutants in cross-boundary river requires joint action of agents along the river. In this paper, we deal with the polluted river cost sharing problem in a cooperative situation. We first introduce a class of bilateral compensation methods (shortly the BC method), which are generalizations of the famous cost allocations, such as Upstream Equal Sharing method and Downstream Equal Sharing method. Then, we investigate the relationship between the BC method and the Shapley value of a special responsibility cost game. Also, we illustrate the stability of the BC method by studying the concavity of the corresponding cost game. Moreover, we provide two axiomatic characterizations of the BC method.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:orspec:v:46:y:2024:i:4:d:10.1007_s00291-023-00738-8
    DOI: 10.1007/s00291-023-00738-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00291-023-00738-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s00291-023-00738-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wang, Yuntong, 2011. "Trading water along a river," Mathematical Social Sciences, Elsevier, vol. 61(2), pages 124-130, March.
    2. Moulin, Herve, 1990. "Uniform externalities : Two axioms for fair allocation," Journal of Public Economics, Elsevier, vol. 43(3), pages 305-326, December.
    3. Wenzhong Li & Genjiu Xu & René van den Brink, 2023. "Two new classes of methods to share the cost of cleaning up a polluted river," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 61(1), pages 35-59, July.
    4. Panfei Sun & Dongshuang Hou & Hao Sun, 2019. "Responsibility and sharing the cost of cleaning a polluted river," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 89(1), pages 143-156, February.
    5. Hung, Ming-Feng & Shaw, Daigee, 2005. "A trading-ratio system for trading water pollution discharge permits," Journal of Environmental Economics and Management, Elsevier, vol. 49(1), pages 83-102, January.
    6. Hou, Dongshuang & Sun, Panfei & Yang, Guangjing, 2020. "Sharing the costs of cleanup polluted river: Upstream compensation method," Economics Letters, Elsevier, vol. 195(C).
    7. van den Brink, Rene & Gilles, Robert P., 1996. "Axiomatizations of the Conjunctive Permission Value for Games with Permission Structures," Games and Economic Behavior, Elsevier, vol. 12(1), pages 113-126, January.
    8. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dongshuang Hou & Aymeric Lardon & Panfei Sun & Genjiu Xu, 2019. "Sharing a Polluted River under Waste Flow Control," GREDEG Working Papers 2019-23, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    2. 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.
    3. 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.
    4. Wu, Hao & van den Brink, René & Estévez-Fernández, Arantza, 2024. "Highway toll allocation," Transportation Research Part B: Methodological, Elsevier, vol. 180(C).
    5. Sylvain Béal & David Lowing & Léa Munich, 2024. "Sharing the cost of cleaning up non-point source pollution," Working Papers 2024-13, CRESE.
    6. Lowing, David, 2024. "Cost allocation in energy distribution networks," Journal of Mathematical Economics, Elsevier, vol. 110(C).
    7. Hao Wu & Rene van den Brink & Arantza Estevez-Fernandez, 2022. "Highway toll allocation," Tinbergen Institute Discussion Papers 22-036/II, Tinbergen Institute.
    8. Jorge Alcalde-Unzu & María Gómez-Rúa & Elena Molis, 2021. "Allocating the costs of cleaning a river: expected responsibility versus median responsibility," International Journal of Game Theory, Springer;Game Theory Society, vol. 50(1), pages 185-214, March.
    9. Wenzhong Li & Genjiu Xu & Rene van den Brink, 2021. "Sharing the cost of cleaning up a polluted river," Tinbergen Institute Discussion Papers 21-028/II, Tinbergen Institute.
    10. Hao Wu & Rene van den Brink & Arantza Estevez-Fernandez, 2022. "The locally partial permission value for games with a permission structure," Tinbergen Institute Discussion Papers 22-037/II, Tinbergen Institute.
    11. Jens Gudmundsson & Jens Leth Hougaard, 2021. "River pollution abatement: Decentralized solutions and smart contracts," IFRO Working Paper 2021/07, University of Copenhagen, Department of Food and Resource Economics, revised Oct 2021.
    12. David Lowing, 2023. "Allocation rules for multi-choice games with a permission tree structure," Annals of Operations Research, Springer, vol. 320(1), pages 261-291, January.
    13. Valencia-Toledo, Alfredo & Vidal-Puga, Juan, 2023. "A linear model for freight transportation," MPRA Paper 119301, University Library of Munich, Germany.
    14. David Lowing, 2023. "Cost allocation in energy distribution networks," Working Papers hal-03680156, HAL.
    15. René van den Brink & Simin He & Jia-Ping Huang, 2015. "Polluted River Problems and Games with a Permission Structure," Tinbergen Institute Discussion Papers 15-108/II, Tinbergen Institute.
    16. Ambec, Stefan & Dinar, Ariel & McKinney, Daene, 2013. "Water sharing agreements sustainable to reduced flows," Journal of Environmental Economics and Management, Elsevier, vol. 66(3), pages 639-655.
    17. 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.
    18. Jens Gudmundsson & Jens Leth Hougaard & Chiu Yu Ko, 2020. "Sharing sequentially triggered losses," IFRO Working Paper 2020/05, University of Copenhagen, Department of Food and Resource Economics.
    19. Gudmundsson, Jens & Hougaard, Jens Leth & Ko, Chiu Yu, 2019. "Decentralized mechanisms for river sharing," Journal of Environmental Economics and Management, Elsevier, vol. 94(C), pages 67-81.
    20. Wenzhong Li & Genjiu Xu & René van den Brink, 2023. "Two new classes of methods to share the cost of cleaning up a polluted river," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 61(1), pages 35-59, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:orspec:v:46:y:2024:i:4:d:10.1007_s00291-023-00738-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.