Allocation of Groundwater Resources and Managing Conflict between Stakeholders (Evidence from Iran)

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Authors

Department of Agricultural Economics, Gorgan University of Agricultural Sciences and Natural Resources, Gorgan, Iran

Abstract

Scarce water resources are often characterized by various decision-makers with conflicting interests. Effective water resource management involves multiple stakeholders with conflicting or competitive objectives, goals, and strategies. To prevent the depletion of aquifers, water shortages, and other related issues, stakeholders should develop optimal allocation tools for water resource management. The present study was conducted to analyze the potential compromise solutions among the groups of stakeholders, using a hybrid model of game theory (GT) and a positive mathematical programming (PMP) model. The two key players considered in this research were the government, which aims to minimize the negative impacts of the environment, including groundwater extraction, and local farmers who want to maximize economic profit. To calculate players’ payoffs, four conflict resolution methods were implemented. The findings revealed that creating a transactional relationship between the stakeholders may save groundwater resources by 36 and 37%, while the farmers’ net income only drops by 8 and 9% compared to the baseline scenario, respectively.

Keywords

Iranian Economic Review

Articles in Press, Accepted Manuscript
Available Online from 06 August 2023

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