Inter-Basin Water Transfer Supply Chain Coordination with Ramsey Pricing

Chen, Zhisong; Cheung, Keith C. K.; Tan, Manyi

doi:10.3390/ijerph16193651

Cited by 3 publications

(1 citation statement)

References 33 publications

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“…However, changes in the ecological environment along the water diversion project will have adverse effects on the interaction of stakeholders and policy formulation, which will inevitably affect social welfare (Mu, 2018). Studies chose game theory and coordination theory to study the cross-basin water transfer supply chain from a social welfare maximization perspective and provide theoretical advice for the improvement of business performance and social welfare optimization of supply chain participants (Chen and Pei, 2018;Chen et al, 2019a). One of the goals of the SNWDP is to fully guarantee the life, production, and ecological security of the people in the water source area and the water-receiving area (Xu and Zeng, 2022), which is the embodiment of social welfare when the government sets the project goals.…”

Section: Introductionmentioning

confidence: 99%

Research on decision-making of water diversion supply chain considering both social welfare and water quality utility

Jiao

Zhang

et al. 2023

Front. Earth Sci.

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When water diversion projects become important part of the water network around the world, the effective operation and management of the projects play important roles in giving full play to the optimal allocation of water resources. For the operation and management of water transfer, the decision-making of water supply chain under the scenario of economic benefit, producer surplus, and water quality utility should be considered simultaneously. According to the idea of supply chain, this paper regards water transfer operation management as a water supply chain composed of water transfer companies, water supply companies, and consumers. From the perspective of social welfare and water quality utility, a comprehensive optimization and coordination decision model for water transfer is proposed. Taking the South-to-North Water Diversion Project as the research object, the cost-sharing contract is designed, and the Stackelberg game method is used to optimize the decision-making and coordination of the water supply chain. The results show that when the concern coefficient and the cost-sharing ratio are evaluated within a given feasible value region, the profits of both the water transfer company and the water supply company can be improved. The feasible value interval of the concern coefficient decreases with the increase in the cost-bearing proportion. When the concern coefficient increases, the profit of the water transfer company decreases, while profit of the water supply company, water quality, consumer surplus, water quality utility, and utility of the water transfer company increase gradually. The results provide valuable references for water transfer decision-making.

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Section: Introductionmentioning

confidence: 99%

Research on decision-making of water diversion supply chain considering both social welfare and water quality utility

Jiao

Zhang

et al. 2023

Front. Earth Sci.

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A novel cost of quality simulation to better select bidders in public private partnerships projects

Jagtap,

Mahajan

2024

Project Leadership and Society

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Proper Pricing Approach to the Water Supply Cost Sharing: A Case Study of the Eastern Route of the South to North Water Diversion Project in China

Liu

Chong

Jia

et al. 2022

Water

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Conflict in cost sharing is normal in complex water distribution system projects, such as the inter-basin water diversion project (IWDP). China’s South to North Water Diversion Project (SNWDP) is the largest IWDP in the world, with a complex relationship between upstream and downstream users of the water supply. Therefore, it is necessary to propose an applicable and unsophisticated cost-sharing method to deal with the complex relationship between upstream and downstream users. This paper proposes an improved cost-sharing method based on the continuity equation of water quantity and the balance equation of the project cost between upstream and downstream users. The fairness of sharing the joint cost between parties involved in the eastern route of SNWDP (ER-SNWDP) obtained using the proposed improved cost-sharing method is investigated by comparing its results with the existing cost-sharing method. The results demonstrate that the proposed method can overcome the non-convergence issue of the existing sharing formula and reduce the differences between upstream and downstream users’ sharing costs. The improved method provides a cost-sharing strategy that is more easily accepted by both the upstream and downstream users than the existing estimation approach. Therefore, the proposed pricing approach can provide technical guidance for decision makers in the effective operation of large-scale IWDPs in areas with quasi water markets.

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Inter-Basin Water Transfer Supply Chain Coordination with Ramsey Pricing

Cited by 3 publications

References 33 publications

Research on decision-making of water diversion supply chain considering both social welfare and water quality utility

Research on decision-making of water diversion supply chain considering both social welfare and water quality utility

A novel cost of quality simulation to better select bidders in public private partnerships projects

Proper Pricing Approach to the Water Supply Cost Sharing: A Case Study of the Eastern Route of the South to North Water Diversion Project in China

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