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A solution for the flood cost sharing problem

Abraham, A and Ramachandran, P (2020) A solution for the flood cost sharing problem. In: Economics Letters, 189 .

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Official URL: https://dx.doi.org/10.1016/j.econlet.2020.109030


In this study, we model and study the flood cost sharing problem on a successive transboundary river shared between n-riparian states. We propose a Sequential Upstream Proportional Allocation (SUPA) solution and axiomatically characterise it. We make use of the Extended Producer Responsibility principle to define a characteristic form game which models cooperative behaviour among riparian states. We show that the proposed sharing rule coincides with the Shapley value of this game. The proposed allocation is also a member of the Core of the game.

Item Type: Journal Article
Publication: Economics Letters
Publisher: Elsevier B.V.
Additional Information: The copyright of this article belongs to Elsevier B.V.
Keywords: Cost sharing; Transboundary floodsRiver; sharing problemShapley; value
Department/Centre: Division of Interdisciplinary Sciences > Management Studies
Date Deposited: 10 Mar 2020 10:44
Last Modified: 10 Mar 2020 10:44
URI: http://eprints.iisc.ac.in/id/eprint/64636

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