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Basin-wide cooperative water resources allocation
Authors:Lizhong Wang   Liping Fang  Keith W. Hipel
Affiliation:aDepartment of Systems Design Engineering, University of Waterloo, Waterloo, Ontario, Canada, N2L 3G1;bDepartment of Mechanical and Industrial Engineering, Ryerson University, Toronto, Ontario, Canada, M5B 2K3
Abstract:The Cooperative Water Allocation Model (CWAM) is designed within a general mathematical programming framework for modeling equitable and efficient water allocation among competing users at the basin level and applied to a large-scale water allocation problem in the South Saskatchewan River Basin located in southern Alberta, Canada. This comprehensive model consists of two main steps: initial water rights allocation and subsequent water and net benefits reallocation. Two mathematical programming approaches, called the priority-based maximal multiperiod network flow (PMMNF) method and the lexicographic minimax water shortage ratios (LMWSR) technique, are developed for use in the first step. Cooperative game theoretic approaches are utilized to investigate how the net benefits can be fairly reallocated to achieve optimal economic reallocation of water resources in the second step. The application of this methodology to the South Saskatchewan River Basin shows that CWAM can be utilized as a tool for promoting the understanding and cooperation of water users to achieve maximum welfare in a river basin and minimize the potential damage caused by water shortages, through water rights allocation, and water and net benefit transfers among water users under a regulated water market or administrative allocation mechanism.
Keywords:OR in natural resources   Resources allocation   Multiple objective optimization   Cooperative game theory   Water rights   Equity   Economic efficiency   South Saskatchewan River Basin
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