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

Stefano Moretti (1) , Fioravnte Patrone (2) , Ariel Dinar (3) , Safwat Abdel-Dayem

1 LAMSADE - Laboratoire d'analyse et modélisation de systèmes pour l'aide à la décision
2 UniGe - Università degli studi di Genova = University of Genoa
3 University of California

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.

Mots clés: water project; cost allocation; cooperative game; Shapley Value; sustainability; stability; Egypt; West Delta

Domaines: Informatique [cs]

Stefano Moretti, Fioravnte Patrone, Ariel Dinar, Safwat Abdel-Dayem. Sharing the Costs of Complex Water Projects: Application to the West Delta Water Conservation and Irrigation Rehabilitation Project, Egypt.. Games, 2016, 7 (3), ⟨10.3390/g7030018⟩. ⟨hal-01416688⟩