IDEAS home Printed from https://ideas.repec.org/a/spr/waterr/v32y2018i14d10.1007_s11269-018-2075-5.html
   My bibliography  Save this article

Bargaining Model of Synergistic Revenue Allocation for the Joint Operations of a Multi-Stakeholder Cascade Reservoir System

Author

Listed:
  • Bin Xu

    (Nanjing Hydraulic Research Institute
    Hohai University)

  • Yufei Ma

    (Hohai University)

  • Ping-an Zhong

    (Hohai University)

  • Zhongbo Yu

    (Nanjing Hydraulic Research Institute
    Hohai University)

  • Jianyun Zhang

    (Nanjing Hydraulic Research Institute)

  • Feilin Zhu

    (Hohai University)

Abstract

Given the institutional limitations of multi-stakeholders, exploring the synergistic revenue from the joint reservoir operations of a multi-stakeholder multi-reservoir system requires a synergistic revenue allocation mechanism to ensure a beneficial solution for multi stakeholders. This study established a synergistic revenue allocation model using bargaining game theory under the principles of equity, rationality, and efficiency. For the maximization the Nash product of gains in the utility of stakeholders and constraints on the feasibility of allocation plans considering all the possible formations of sub-coalitions, the analytic optimal solution of the bargaining model was derived using the first-order optimality condition. The optimal revenue allocation plan meets the conditions of the equal quasi-marginal utility function among stakeholders. The methodologies were applied to a hypothetical cascade reservoir system operated by multiple stakeholders. Compared with the revenue allocation plans obtained by a proportional rule method and the Shapley value method, the results corroborate that (1) the allocation plan of the bargaining model is jointly determined by the interval of the revenue range of each reservoir and the effectiveness of the sub-coalition constraints, indicating that the allocated synergistic revenue is positively correlated with the singleton contribution and team contribution on the total revenue of the grand coalition; (2) the difference in the plans obtained by the three methods is generally determined by the difference in equity definition; and (3) the synergistic revenue allocation plan obtained from the bargaining model is the highest homogenized among all reservoirs (stakeholders), which demonstrates that the revenue of those dominated stakeholders can be improved compared with other plans. The proposed methodologies provide new insights to guide benefit share decisions in multi-stakeholder reservoirs system.

Suggested Citation

  • Bin Xu & Yufei Ma & Ping-an Zhong & Zhongbo Yu & Jianyun Zhang & Feilin Zhu, 2018. "Bargaining Model of Synergistic Revenue Allocation for the Joint Operations of a Multi-Stakeholder Cascade Reservoir System," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 32(14), pages 4625-4642, November.
  • Handle: RePEc:spr:waterr:v:32:y:2018:i:14:d:10.1007_s11269-018-2075-5
    DOI: 10.1007/s11269-018-2075-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11269-018-2075-5
    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/s11269-018-2075-5?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. Huang, Hailun & Yan, Zheng, 2009. "Present situation and future prospect of hydropower in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1652-1656, August.
    2. Nash, John, 1953. "Two-Person Cooperative Games," Econometrica, Econometric Society, vol. 21(1), pages 128-140, April.
    3. Hojjat Mianabadi & Erik Mostert & Saket Pande & Nick van de Giesen, 2015. "Weighted Bankruptcy Rules and Transboundary Water Resources Allocation," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 29(7), pages 2303-2321, May.
    4. Ming, Zeng & Song, Xue & Mingjuan, Ma & Xiaoli, Zhu, 2013. "New energy bases and sustainable development in China: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 169-185.
    5. Cheng, Chuntian & Li, Shushan & Li, Gang, 2014. "A hybrid method of incorporating extended priority list into equal incremental principle for energy-saving generation dispatch of thermal power systems," Energy, Elsevier, vol. 64(C), pages 688-696.
    6. Corentin Girard & Jean-Daniel Rinaudo & Manuel Pulido-Velazquez, 2016. "Sharing the cost of river basin adaptation portfolios to climate change: Insights from social justice and cooperative game theory," Post-Print hal-01475878, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yun Chen & Zhigen Hu & Quan Liu & Shu Chen, 2020. "Evolutionary Game Analysis of Tripartite Cooperation Strategy under Mixed Development Environment of Cascade Hydropower Stations," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 34(6), pages 1951-1970, April.
    2. Lingquan Dai & Huichao Dai & Haibo Liu & Yu Wang & Jiali Guo & Zhuosen Cai & Chenxi Mi, 2020. "Development of an Optimal Model for the Xiluodu-Xiangjiaba Cascade Reservoir System Considering the Downstream Environmental Flow," Sustainability, MDPI, vol. 12(3), pages 1-18, January.
    3. Liqin Zhang & Jun XIE & Xingying CHEN & Yongsheng Zhan & Lv Zhou, 2020. "Cooperative Game-Based Synergistic Gains Allocation Methods for Wind-Solar-Hydro Hybrid Generation System with Cascade Hydropower," Energies, MDPI, vol. 13(15), pages 1-14, July.
    4. Li Pan & Xudong Chen & Lu Zhao & Anran Xiao, 2019. "Does Information Asymmetry Impact Sub-Regions’ Cooperation of Regional Water Resource Allocation?," IJERPH, MDPI, vol. 16(21), pages 1-16, November.

    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. Shaohua Hu & Xinlong Zhou & Yi Luo & Guang Zhang, 2019. "Numerical Simulation Three-Dimensional Nonlinear Seepage in a Pumped-Storage Power Station: Case Study," Energies, MDPI, vol. 12(1), pages 1-15, January.
    2. Zhuowei Shen & Pan Liu & Bo Ming & Maoyuan Feng & Xiaoqi Zhang & He Li & Aili Xie, 2018. "Deriving Optimal Operating Rules of a Multi-Reservoir System Considering Incremental Multi-Agent Benefit Allocation," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 32(11), pages 3629-3645, September.
    3. Dagmawi Mulugeta Degefu & Weijun He & Liang Yuan & An Min & Qi Zhang, 2018. "Bankruptcy to Surplus: Sharing Transboundary River Basin’s Water under Scarcity," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 32(8), pages 2735-2751, June.
    4. Cheng, Chuntian & Liu, Benxi & Chau, Kwok-Wing & Li, Gang & Liao, Shengli, 2015. "China׳s small hydropower and its dispatching management," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 43-55.
    5. Zeng, Ming & Yang, Yongqi & Fan, Qiannan & Liu, Yingxin & Zou, Zhuojun, 2015. "Coordination between clean energy generation and thermal power generation under the policy of “direct power-purchase for large users” in China," Utilities Policy, Elsevier, vol. 33(C), pages 10-22.
    6. Dagmawi Mulugeta Degefu & Weijun He & Liang Yuan, 2017. "Monotonic Bargaining Solution for Allocating Critically Scarce Transboundary Water," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(9), pages 2627-2644, July.
    7. Ding, Ning & Duan, Jinhui & Xue, Song & Zeng, Ming & Shen, Jianfei, 2015. "Overall review of peaking power in China: Status quo, barriers and solutions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 503-516.
    8. Federico Di Pace & Matthias Hertweck, 2019. "Labor Market Frictions, Monetary Policy, and Durable Goods," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 32, pages 274-304, April.
    9. Bergantiños, Gustavo & Vidal-Puga, Juan, 2010. "Realizing fair outcomes in minimum cost spanning tree problems through non-cooperative mechanisms," European Journal of Operational Research, Elsevier, vol. 201(3), pages 811-820, March.
    10. Guth, Werner & Ritzberger, Klaus & van Damme, Eric, 2004. "On the Nash bargaining solution with noise," European Economic Review, Elsevier, vol. 48(3), pages 697-713, June.
    11. Scharpf, Fritz W. & Mohr, Matthias, 1994. "Efficient self-coordination in policy networks: A simulation study," MPIfG Discussion Paper 94/1, Max Planck Institute for the Study of Societies.
    12. Fandel, Günter & Giese, Anke & Mohn, Brigitte, 2012. "Measuring synergy effects of a Public Social Private Partnership (PSPP) project," International Journal of Production Economics, Elsevier, vol. 140(2), pages 815-824.
    13. António Brandão & Joana Pinho & Hélder Vasconcelos, 2014. "Asymmetric Collusion with Growing Demand," Journal of Industry, Competition and Trade, Springer, vol. 14(4), pages 429-472, December.
    14. Dinar, Ariel, 1989. "Application of the Nash Bargaining Model to a Problem of Efficient Resources Use and Cost-Benefit Allocation," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270685, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Ming, Zeng & Lilin, Peng & Qiannan, Fan & Yingjie, Zhang, 2016. "Trans-regional electricity transmission in China: Status, issues and strategies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 572-583.
    16. Xinxin Liu & Xiaosheng Wang & Haiying Guo & Xiaojie An, 2021. "Benefit Allocation in Shared Water-Saving Management Contract Projects Based on Modified Expected Shapley Value," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 35(1), pages 39-62, January.
    17. Ahmed, Saeed & Mahmood, Anzar & Hasan, Ahmad & Sidhu, Guftaar Ahmad Sardar & Butt, Muhammad Fasih Uddin, 2016. "A comparative review of China, India and Pakistan renewable energy sectors and sharing opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 216-225.
    18. Volodymyr Babich & Simone Marinesi & Gerry Tsoukalas, 2021. "Does Crowdfunding Benefit Entrepreneurs and Venture Capital Investors?," Manufacturing & Service Operations Management, INFORMS, vol. 23(2), pages 508-524, March.
    19. Zhigang Cao, 2011. "Remarks on Bargaining and Cooperation in Strategic Form Games," Discussion Paper Series dp565, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    20. Ley, Eduardo, 2006. "Statistical inference as a bargaining game," Economics Letters, Elsevier, vol. 93(1), pages 142-149, October.

    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:waterr:v:32:y:2018:i:14:d:10.1007_s11269-018-2075-5. 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.