Water Allocation Management Under Scarcity: a Bankruptcy Approach

Abstract

AbstractThis study hopes to develop a multi-criteria decision-making (MCDM) method for equitable and efficient allocation of water resources under scarcity. Based on the Bankruptcy problems, five classic plus one proposed allocation rules are introduced to generate water distribution alternatives. The “Core” solution of Cooperative Game Theory (CGT) and the Security Restriction have been used to select feasible alternatives. Additionally, five voting methods in Social Choice Theory (SCT) are launched to aggregate preferences and obtain a “win” alternative. Apply this model to the 2030 water allocation planning project of Ezhou City, China, as a case study. Under the proposed rule, Adjust minimal overlap rule (AMO), five regions, Urban Area, Gedian DZ, and three counties, hold the water deficit rate of 5.9%, 15.8%, and 4.7%-6.1%, respectively. In aggregating preferences by voting, AMO wins four out of five methods and takes second place in the last one, which provides some insights for allocating water fairly and feasibly.