Cost Allocation in Dam Removal Project

Abstract

In dam removal project, dam manager may prefer to wait the others' removal and learn the impact of the environment by removal. If all managers in the basin have same preference, the dams cannot be removed efficiently. In this study, we model the dam removal project by use of game theory and dynamic programming. Then, we show that cost allocation method proposed in cooperative game theory can contribute to efficient dam removal. In addition, we propose the cost allocation scheme which enables the manager to apply theoretical result without complicated mathematical computation.