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Cooperative game theory and its application to natural, environmental, and water resource issues : 2. application to natural and environmental resources

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  • Zara, Stefano
  • Dinar, Ariel
  • Patrone, Fioravante

Abstract

This paper provides a review of various applications of cooperative game theory (CGT) to issues of natural and environmental resources. With an increase in the level of competition over environmental and natural resources, the incidents of disputes have been at the center of allocation agreements. The paper reviews the cases of common pool resources such as fisheries and forests, and cases of environmental pollution such as acid rain, flow, and stock pollution. In addition to providing examples of cooperative solutions to allocation problems, the conclusion from this review suggests that cooperation over scarce environmental and natural resources is possible under a variety of physical conditions and institutional arrangements. CGT applications to international fishery disputes are especially useful in that they have been making headway in policy-related agreements among states and regions of the world. Forest applications are more local in nature, but of great relevance in solving disputes among communities and various levels of governments.

Suggested Citation

  • Zara, Stefano & Dinar, Ariel & Patrone, Fioravante, 2006. "Cooperative game theory and its application to natural, environmental, and water resource issues : 2. application to natural and environmental resources," Policy Research Working Paper Series 4073, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4073
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    References listed on IDEAS

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    1. E. Loehman & A. Whinston, 1974. "An Axiomatic Approach to Cost Allocation for Public Investment," Public Finance Review, , vol. 2(2), pages 236-250, April.
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    1. Dinar, Ariel & Farolfi, Stefano & Patrone, Fioravante & Rowntree, Kate, 2006. "TO NEGOTIATE OR TO GAME THEORIZE: Negotiation vs. Game Theory Outcomes for Water Allocation Problems in the Kat Basin, South Africa," Working Papers 60888, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.
    2. António Osório, 2017. "A Sequential Allocation Problem: The Asymptotic Distribution of Resources," Group Decision and Negotiation, Springer, vol. 26(2), pages 357-377, March.
    3. Grundel, S. & Borm, P.E.M. & Hamers, H.J.M., 2011. "A Compromise Stable Extension of Bankruptcy Games : Multipurpose Resource Allocation," Other publications TiSEM b1926d6b-22f4-4f28-84a2-9, Tilburg University, School of Economics and Management.
    4. Ershad Oftadeh & Mojtaba Shourian & Bahram Saghafian, 2017. "An Ultimatum Game Theory Based Approach for Basin Scale Water Allocation Conflict Resolution," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(13), pages 4293-4308, October.
    5. Soesja Grundel & Peter Borm & Herbert Hamers, 2019. "Resource allocation problems with concave reward functions," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 27(1), pages 37-54, April.
    6. Hurt, Wesley & Osório, António (António Miguel), 2014. "A Sequential Allocation Problem: The Asymptotic Distribution of Resources," Working Papers 2072/237596, Universitat Rovira i Virgili, Department of Economics.
    7. Mehran Homayounfar & Sai Lai & Mehdi Zommorodian & Amin Oroji & Arman Ganji & Sara Kaviani, 2015. "Developing a Non-Discrete Dynamic Game Model and Corresponding Monthly Collocation Solution Considering Variability in Reservoir Inflow," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 29(8), pages 2599-2618, June.
    8. 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.
    9. Alvarez, Isabelle & Zaleski, Laetitia & Briot, Jean-Pierre & de A. Irving, Marta, 2023. "Collective management of environmental commons with multiple usages: A guaranteed viability approach," Ecological Modelling, Elsevier, vol. 475(C).
    10. 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.
    11. Hadi Tarebari & Amir Hossein Javid & Seyyed Ahmad Mirbagheri & Hedayat Fahmi, 2018. "Multi-Objective Surface Water Resource Management Considering Conflict Resolution and Utility Function Optimization," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 32(14), pages 4487-4509, November.
    12. Osório, António (António Miguel), 2016. "A Sequential Allocation Problem: The Asymptotic Distribution of Resources," Working Papers 2072/266574, Universitat Rovira i Virgili, Department of Economics.
    13. Natalya Gennadievna Dzhurka, 2021. "Research on Spatial Economic Interactions: A Cooperative Game Theory Approach," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 1, pages 144-162.
    14. Soesja Grundel & Peter Borm & Herbert Hamers, 2013. "Resource allocation games: a compromise stable extension of bankruptcy games," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 78(2), pages 149-169, October.
    15. Álvarez, Xana & Gómez-Rúa, María & Vidal-Puga, Juan, 2019. "Risk prevention of land flood: A cooperative game theory approach," MPRA Paper 91515, University Library of Munich, Germany.
    16. Moradi, Sohrab & Limaei, Soleiman Mohammadi, 2018. "Multi-objective game theory model and fuzzy programing approach for sustainable watershed management," Land Use Policy, Elsevier, vol. 71(C), pages 363-371.
    17. M. Fiestras-Janeiro & Ignacio García-Jurado & Manuel Mosquera, 2011. "Cooperative games and cost allocation problems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 19(1), pages 1-22, July.
    18. Meraj Sohrabi & Zeynab Banoo Ahani Amineh & Mohammad Hossein Niksokhan & Hossein Zanjanian, 2023. "A framework for optimal water allocation considering water value, strategic management and conflict resolution," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1582-1613, February.
    19. Keita Honjo, 2015. "Cooperative Emissions Trading Game: International Permit Market Dominated by Buyers," PLOS ONE, Public Library of Science, vol. 10(8), pages 1-20, August.

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    Keywords

    Environmental Economics&Policies; Fisheries&Aquaculture; Common Property Resource Development; Economic Theory&Research; Ecosystems and Natural Habitats;
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