IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v16y2019i21p4292-d283752.html
   My bibliography  Save this article

Does Information Asymmetry Impact Sub-Regions’ Cooperation of Regional Water Resource Allocation?

Author

Listed:
  • Li Pan

    (Business School, Sichuan University, Chengdu 610064, China)

  • Xudong Chen

    (College of Management Science, Chengdu University of Technology, Chengdu 610059, China)

  • Lu Zhao

    (Business School, Sichuan University, Chengdu 610064, China)

  • Anran Xiao

    (College of Management Science, Chengdu University of Technology, Chengdu 610059, China)

Abstract

Water resources allocation is an urgent problem for basin authorities. In order to obtain greater economic benefits from limited water supplies, sub-regions must cooperate with each other. To study the influence of cooperation among sub-regions and the symmetry of cooperation information on the interests of the basin authority and each sub-region, this study proposes a regional water allocation model in three different situations: (1) non-cooperation; (2) cooperation and information symmetry; (3) cooperation and information asymmetry. The proposed model clearly reflects the Stackelberg game relationship between the basin authority and sub-regions. Finally, the model is applied to the Qujiang River Basin in China, and the decisions of the basin authority and sub-regional managers of the Qujiang River Basin under three different situations are discussed. The results show that regional cooperation benefits both the cooperative regions and the social welfare value of the entire river basin, when compared with non-cooperation.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jijerp:v:16:y:2019:i:21:p:4292-:d:283752
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/16/21/4292/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/16/21/4292/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wang, Lizhong & Fang, Liping & Hipel, Keith W., 2008. "Basin-wide cooperative water resources allocation," European Journal of Operational Research, Elsevier, vol. 190(3), pages 798-817, November.
    2. 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.
    3. Dedi Liu & Xiaohong Chen & Zhanghua Lou, 2010. "A Model for the Optimal Allocation of Water Resources in a Saltwater Intrusion Area: A Case Study in Pearl River Delta in China," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(1), pages 63-81, January.
    4. Jan Eliasson, 2015. "The rising pressure of global water shortages," Nature, Nature, vol. 517(7532), pages 6-6, January.
    5. Dagmawi Mulugeta Degefu & Weijun He & Liang Yuan & Jian Hua Zhao, 2016. "Water Allocation in Transboundary River Basins under Water Scarcity: a Cooperative Bargaining Approach," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(12), pages 4451-4466, September.
    6. Mojtaba Sadegh & Reza Kerachian, 2011. "Water Resources Allocation Using Solution Concepts of Fuzzy Cooperative Games: Fuzzy Least Core and Fuzzy Weak Least Core," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(10), pages 2543-2573, August.
    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. Chunlong Li & Jianzhong Zhou & Shuo Ouyang & Chao Wang & Yi Liu, 2015. "Water Resources Optimal Allocation Based on Large-scale Reservoirs in the Upper Reaches of Yangtze River," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 29(7), pages 2171-2187, May.
    2. Jing Tian & Dedi Liu & Shenglian Guo & Zhengke Pan & Xingjun Hong, 2019. "Impacts of Inter-Basin Water Transfer Projects on Optimal Water Resources Allocation in the Hanjiang River Basin, China," Sustainability, MDPI, vol. 11(7), pages 1-19, April.
    3. Keighobad Jafarzadegan & Armaghan Abed-Elmdoust & Reza Kerachian, 2013. "A Fuzzy Variable Least Core Game for Inter-basin Water Resources Allocation Under Uncertainty," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(9), pages 3247-3260, July.
    4. 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.
    5. Hamed Poorsepahy-Samian & Reza Kerachian & Mohammad Nikoo, 2012. "Water and Pollution Discharge Permit Allocation to Agricultural Zones: Application of Game Theory and Min-Max Regret Analysis," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(14), pages 4241-4257, November.
    6. Mohammad Nikoo & Reza Kerachian & Akbar Karimi, 2012. "A Nonlinear Interval Model for Water and Waste Load Allocation in River Basins," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(10), pages 2911-2926, August.
    7. Hu, Zhineng & Chen, Yazhen & Yao, Liming & Wei, Changting & Li, Chaozhi, 2016. "Optimal allocation of regional water resources: From a perspective of equity–efficiency tradeoff," Resources, Conservation & Recycling, Elsevier, vol. 109(C), pages 102-113.
    8. Songsong Liu & Lazaros Papageorgiou & Petros Gikas, 2012. "Integrated Management of Non-conventional Water Resources in Anhydrous Islands," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(2), pages 359-375, January.
    9. Karsu, Özlem & Morton, Alec, 2015. "Inequity averse optimization in operational research," European Journal of Operational Research, Elsevier, vol. 245(2), pages 343-359.
    10. Wang, S. & Huang, G.H., 2014. "An integrated approach for water resources decision making under interactive and compound uncertainties," Omega, Elsevier, vol. 44(C), pages 32-40.
    11. Qian Chen & Jaume Freire González & Donglan Zha, 2023. "The Gap between Expectations and Reality: Assessing the Water Rebound Effect in Chinese Agriculture," Working Papers 1415, Barcelona School of Economics.
    12. Zhongwen Xu & Liming Yao & Yin Long, 2020. "Climatic Impact Toward Regional Water Allocation and Transfer Strategies from Economic, Social and Environmental Perspectives," Land, MDPI, vol. 9(11), pages 1-17, November.
    13. Dedi Liu & Shenglian Guo & Pan Liu & Hui Zou & Xingjun Hong, 2019. "Rational Function Method for Allocating Water Resources in the Coupled Natural-Human Systems," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 33(1), pages 57-73, January.
    14. Yizhong Chen & Li He & Hongwei Lu & Jing Li & Lixia Ren, 2018. "Planning for Regional Water System Sustainability Through Water Resources Security Assessment Under Uncertainties," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 32(9), pages 3135-3153, July.
    15. Wang, Chao & Sun, Qiyuan & Wang, Peifang & Hou, Jun & Qu, Aiyu, 2013. "An optimization approach to runoff regulation for potential estuarine eutrophication control: Model development and a case study of Yangtze Estuary, China," Ecological Modelling, Elsevier, vol. 251(C), pages 199-210.
    16. 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.
    17. Mohammad Nikoo & Reza Kerachian & Hamed Poorsepahy-Samian, 2012. "An Interval Parameter Model for Cooperative Inter-Basin Water Resources Allocation Considering the Water Quality Issues," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(11), pages 3329-3343, September.
    18. Jianan Qin & Xiang Fu & Shaoming Peng & Sha Huang, 2020. "An Integrated Decision Support Framework for Incorporating Fairness and Stability Concerns into River Water Allocation," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 34(1), pages 211-230, January.
    19. Khadije Norouzi Khatiri & Mohammad Hossein Niksokhan & Amin Sarang & Asghar Kamali, 2020. "Coupled Simulation-Optimization Model for the Management of Groundwater Resources by Considering Uncertainty and Conflict Resolution," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 34(11), pages 3585-3608, September.
    20. 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.

    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:gam:jijerp:v:16:y:2019:i:21:p:4292-:d:283752. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.