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Sharing the costs of cleaning a river: the Upstream Responsibility rule

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  • Jorge Alcalde-Unzu

    ()
    (Public University of Navarre, Department of Economics.)

  • Maria Gomez-Rua

    ()
    (University of Vigo, Department of Statistics and Operations Research.)

  • Elena Molis

    ()
    (Department of Economic Theory and Economic History, University of Granada.)

Abstract

The cleaning up of waste present in transboundary rivers, which re- quires the cooperation of di erent authorities, is a problematic issue, espe- cially when responsibility for the discharge of the waste is not well-de ned. Following Ni and Wang [12] we assume that a river is a segment divided into several regions from upstream to downstream. We show that when the transfer rate of the waste is unknown, the clean-up cost vector provides useful information for estimating some limits in regard to the responsi- bility of each region. We propose a cost allocation rule, the Upstream Responsibility rule, which takes into account these limits in distributing costs \fairly" and we provide an axiomatic characterization of this rule via certain properties based on basic ideas concerning the responsibility of regions.

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File URL: http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers13_03.pdf
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Bibliographic Info

Paper provided by Department of Economic Theory and Economic History of the University of Granada. in its series ThE Papers with number 13/03.

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Length: 23 pages
Date of creation: 27 Feb 2013
Date of revision:
Handle: RePEc:gra:wpaper:13/03

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Keywords: Cost allocation; waste river; responsibility; characterization;

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  1. van den Brink, René & van der Laan, Gerard & Moes, Nigel, 2012. "Fair agreements for sharing international rivers with multiple springs and externalities," Journal of Environmental Economics and Management, Elsevier, vol. 63(3), pages 388-403.
  2. Beard, Rodney, 2011. "The river sharing problem: A review of the technical literature for policy economists," MPRA Paper 34382, University Library of Munich, Germany.
  3. Sylvain Beal & Amandine Ghintran & Eric Remila & Philippe Solal, 2013. "The River Sharing Problem: A Survey," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., World Scientific Publishing Co. Pte. Ltd., vol. 15(03), pages 1340016-1-1.
  4. Gerard van der Laan & Nigel Moes, 2012. "Transboundary Externalities and Property Rights: An International River Pollution Model," Tinbergen Institute Discussion Papers 12-006/1, Tinbergen Institute.
  5. Wang, Yuntong, 2011. "Trading water along a river," Mathematical Social Sciences, Elsevier, Elsevier, vol. 61(2), pages 124-130, March.
  6. Yann Rébillé & Lionel Richefort, 2012. "Sharing Water from many Rivers," Working Papers hal-00678997, HAL.
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