Abstract
A game theoretic approach is applied to the net benefit allocation problem in reservoir renewal projects. Since renewal projects are implemented at the sites where existing agencies have already used reservoirs, the problem of allocating net benefit as required by renewal projects is more difficult than that of simply allocating costs in the case of constructing a new reservoir. In this paper, the differences in bargaining power between new and existing agencies are reflected explicitly in the permission stricture between users and owners of sites. Then, the net benefit allocation method based on the permission structure is proposed. The modified allocation method including the time limit on user's right is shown to be more reasonable when we account for allocating water resources for a longer span of time.
