Evaluation of economic scenarios of water allocation using game theory

Abstract

Abstract Water allocation can be evaluated from various economic, environmental, food security, and climate aspects. This paper was conducted to develop an optimal water allocation strategy with an economic framework. Game theory has been used to determine the planning structure. A co-operative technique based on the core solution, Shepley value, and nucleolus solution has been incorporated into the decision-making system and the results of the proposed model have been calculated based on the long-term information of the downstream cropping pattern in the Zhanghe irrigation network, Hubei Province, China. Five components of rice planting including growth period, yield production, water consumption, selling price, and cultivated area have been evaluated to find the optimal scenarios. Results showed that the application of co-operative game theory can improve the economic index and water-saving potential in agriculture. Furthermore, the proposed simulation confirmed that the economic effects were important for understanding and planning for irrigation efficiency and water-saving potential.