Sharing the costs of cleanup polluted river: Upstream compensation method

Dongshuang Hou, Panfei Sun*, Guangjing Yang

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

1 Citation (Scopus)

Abstract

This article proposes one new allocation called upstream compensation method (UCM, for short) for the polluted river cleanup cost, based on two doctrines in international disputes. We explain the fairness of the method by showing the coincidence of UCM method and the Shapley value. On the other, by studying the concavity of the induced game, we illustrate the stability of UCM.

Original languageEnglish
Article number109473
JournalEconomics letters
Volume195
DOIs
Publication statusPublished - Oct 2020

Keywords

  • Cooperative game
  • Cost allocation
  • Fairness
  • Polluted river
  • Shapley value

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