Allocation of costs to clean up a polluted river: an axiomatic approach

Autor: Wilson da C. Vieira
Rok vydání: 2015
Předmět:
Zdroj: Economics Bulletin. 35(2):1216-1226
Popis: This paper proposes a method to share the costs of cleaning up a polluted river among the agents located along it. This method is based on a model of pollutant transport and the polluter pays principle. We provide an axiomatic characterization for this method and investigate its relationship with both the (weighted) Shapley value and the tau-value of the corresponding cost game generated from the problem. We show that the solution of the proposed method coincides with both the weighted Shapley value and the tau-value.
Databáze: OpenAIRE