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

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  • Jorge Alcalde-Unzu

    ()
    (Departamento de Economía-UPNA)

  • María Gómez-Rúa

    ()
    (Department of Statistics and Operations Research-Universidad de Vigo)

  • Elena Molis

    ()
    (Department of Economics-Universidad de Granada)

Abstract

The cleaning up of waste present in transboundary rivers, which requires the cooperation of diferent authorities, is a problematic issue, especially when responsibility for the discharge of the waste is not well-defined. 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 responsibility 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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Bibliographic Info

Paper provided by Departamento de Economía - Universidad Pública de Navarra in its series Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra with number 1301.

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Date of creation: 2013
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Publication status: Published in
Handle: RePEc:nav:ecupna:1301

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

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  1. Wang, Yuntong, 2011. "Trading water along a river," Mathematical Social Sciences, Elsevier, vol. 61(2), pages 124-130, March.
  2. 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., vol. 15(03), pages 1340016-1-1.
  3. Rene van den Brink & Gerard van der Laan & Nigel Moes, 2010. "Fair Agreements for Sharing International Rivers with Multiple Springs and Externalities," Tinbergen Institute Discussion Papers 10-096/1, Tinbergen Institute.
  4. Yann Rébillé & Lionel Richefort, 2012. "Sharing Water from many Rivers," Working Papers hal-00678997, HAL.
  5. Beard, Rodney, 2011. "The river sharing problem: A review of the technical literature for policy economists," MPRA Paper 34382, University Library of Munich, Germany.
  6. 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.
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