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Incorporating Water Demand Management into a Cooperative Water Allocation Framework

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Abstract

The impact of a water demand management plan on a water system and its users is investigated within a comprehensive cooperative water allocation framework. In particular, a demand management plan is incorporated into a two-step multi-period fair water allocation model. A modified cooperative game is designed for the sharing of additional net benefits under the scenario having water demand management. The results indicate that cooperation among water users can yield more net benefits, and a water demand management plan is able to lead to a further increase of the aggregated net benefits by means of water transfers from less productive users to more productive ones. By utilizing the modified cooperative game, fair sharing of additional net benefits ensures that every water user can expect to receive more net benefits and thereby water users are motivated by incentives to implement a water demand management plan which in turn improves water use efficiency. The results demonstrate that the demand management plan can be of great assistance in some arid and semi-arid regions.

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Acknowledgments

The authors would like to thank the anonymous referees and the Associate Editor for providing helpful comments that enhanced the quality of this paper. The authors would also like to thank the Natural Sciences and Engineering Research Council (NSERC) of Canada for furnishing research funding. The first author would like to express his gratitude to the China Scholarship Council for providing financial support (No. 201206710003).

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Authors and Affiliations

  1. Department of Systems Design Engineering, University of Waterloo, Waterloo, Ontario, Canada, N2L 3G1

    Yi Xiao & Keith W. Hipel

  2. Centre for International Governance Innovation, Waterloo, Ontario, Canada, N2L 6C2

    Keith W. Hipel

  3. Department of Mechanical and Industrial Engineering, Ryerson University, Toronto, Ontario, Canada, M5B 2K3

    Liping Fang

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  1. Yi Xiao
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  2. Keith W. Hipel
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  3. Liping Fang
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Correspondence to Keith W. Hipel.

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Xiao, Y., Hipel, K.W. & Fang, L. Incorporating Water Demand Management into a Cooperative Water Allocation Framework. Water Resour Manage 30, 2997–3012 (2016). https://doi.org/10.1007/s11269-016-1322-x

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  • DOI: https://doi.org/10.1007/s11269-016-1322-x

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