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Two new classes of methods to share the cost of cleaning up a polluted river

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Abstract

Consider a group of agents located along a polluted river where every agent must pay a certain cost for cleaning up the polluted river. Following the model of Ni and Wang (2007), we propose weaker versions of some of their axioms, and introduce two classes of cost sharing methods. We first show that the upstream equal sharing method (for short, UES method) is characterized by relaxing independence of upstream costs and no blind cost appearing in Ni and Wang (2007). After that, we propose the classes of equal upstream responsibility methods (for short, EUR methods) and weighted upstream sharing methods (for short, WUS methods), which generalizes the local responsibility sharing method (for short, LRS method) and the UES method. We provide two axiomatizations of the class of EUR methods by replacing upstream symmetry for the UES method with weak upstream symmetry. Meanwhile, we also provide two axiomatizations of the class of WUS methods by introducing two other weak versions of upstream symmetry. Finally, we define a pollution cost-sharing game, and show that each of the EUR methods and WUS methods is obtained as a Harsanyi solution for these pollution cost-sharing games. Moreover, we also show that the average of the LRS method and UES method, referred to as the compromise method, coincides with the Shapley value of this game.

Original languageEnglish
Pages (from-to)35-59
Number of pages25
JournalSocial Choice and Welfare
Volume61
Issue number1
Early online date28 Nov 2022
DOIs
Publication statusPublished - Jul 2023

Bibliographical note

Funding Information:
This work was supported by grants from National Natural Science Foundation of China (82073110 to Xiangwei Gao and 81900878 to Kairan Lai), Health Commission of Zhejiang Province (2019KY673) and Zhejiang Youth Talent Support Program (ZJWR0308085 to Xiangwei Gao).

Funding Information:
Zhejiang Youth Talent Support Program, Grant/Award Number: ZJWR0308085; Health Commission of Zhejiang Province, Grant/Award Number: 2019KY673; National Natural Science Foundation of China, Grant/Award Numbers: 81900878, 82073110 Funding information

Publisher Copyright:
© 2022, The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.

Funding

This work was supported by grants from National Natural Science Foundation of China (82073110 to Xiangwei Gao and 81900878 to Kairan Lai), Health Commission of Zhejiang Province (2019KY673) and Zhejiang Youth Talent Support Program (ZJWR0308085 to Xiangwei Gao). The authors thank an associate editor and two anonymous referees for very helpful comments and suggestions. This work is supported by the National Natural Science Foundation of China (Grant Nos. 72071159), National Key R &D Program of China (Grant No. 2021YFA1000400) and China Scholarship Council (Grant Nos. 202006290157). Zhejiang Youth Talent Support Program, Grant/Award Number: ZJWR0308085; Health Commission of Zhejiang Province, Grant/Award Number: 2019KY673; National Natural Science Foundation of China, Grant/Award Numbers: 81900878, 82073110 Funding information

FundersFunder number
Zhejiang Youth Talent Support ProgramZJWR0308085
National Natural Science Foundation of China72071159, 81900878, 82073110
China Scholarship Council202006290157
National Key Research and Development Program of China2021YFA1000400
Health Commission of Zhejiang Province2019KY673

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