Simulating Water Conflicts Using
Game Theoretical Models For Water
Resources Management
Author(s)
S. Wei & A. Gnauck
Abstract
Water quality degradation and water scarcity are two serious problems in
developing countries. Water management related to these problems usually
involves multi-stakeholders with contradictory interests. In the absence of
market and exclusive property rights, conflicts among those multi-stakeholders
are unavoidable. Game theory can be an appropriate approach to simulate and
resolve such conflicts. In this paper, the conflicts of multiple water stakeholders
involved in water management of the Hanjiang River Basin in China are
modelled as non-cooperative and cooperative games. Statistical and econometric
regression models are used to formulate the payoff functions of different players.
Cost-benefit analysis (CBA) and the demand-supply principle (DSP) are applied
to compare the game outcomes. The results of the game simulations show that
cooperation can make all the players better off, although some players may be
worse off before the benefit is shared among the players by side payment. The
results are not only a comparison of the different water stakeholders, but also
benefit water administration for decision support.
Keywords: water management, game theory, Hanjiang River, modelling and
simulation, cost-benefit analysis.
1 Introduction
Water is essential for the existence of human and other species. However, water
quality degradation and water scarcity are two serious problems in developing
countries. It is estimated that in 2025, 5 billion out of the world’s 7.9 billion
people will be living in areas where it will be difficult or even impossible to meet
Keywords
water management, game theory, Hanjiang River, modelling and
simulation, cost-benefit analysis.
Related Book
Other papers in this volume
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