Regional Cooperation in the Use of Irrigation Water: Efficiency and Income Distribution
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The paper presents an analysis of the economic potential of regional cooperation in water use
in irrigation under conditions characterized by a general trend of increasing salinity. Income maximizing
solutions for the region are derived and the related income distribution schemes are solved
for, with the aid of cooperative game theory algorithms and shadow cost pricing. Distinction is
made between distribution policies with and without side payments. The reasonableness and the
acceptability of these schemes is later critically evaluated. The Nash-Harsanyi approach seems
to be the most appropriate for the conditions studied.