A Game Theory Approach for Conjunctive Use Optimization Model Based on Virtual Water Concept

Abstract

In this study to allocate the agricultural and environmental water, considering virtual water concept, a multi-objective optimization model based on NSGA-II is developed. The objectives consist of equity maximization, agricultural benefit maximization for each region, maximization of green water utilization and finally minimization of environmental shortage. Then a cooperative game (Grand Coalition) model is presented by forming all possible coalitions. By the game model including Nucleolus, Proportional Nucleolus, Normal Nucleolus and Shapley methods, the benefit is reallocated based on all Pareto optimal solutions obtained from multi-objective optimization model. Then using two famous fallback bargaining methods, Unanimity and q-Approval, preferable alternative (solution) for each of the cooperative games is determined. Finally, based on the obtained benefit for each selected alternatives, the two most beneficial alternatives are chosen. The proposed methodology applied for water allocation of Minoo-Dasht, Azad-Shahr and Gonbad-Kavoos cities in Golestan province, Iran for a 3-year period as a case study. Also, eight crops including Wheat, Alfalfa, Barley, Bean, Rice, Corn, Soya, and Cotton are selected based on local experts' recommendations. The models' results indicated no significant difference between the grand coalition model and the multi-objective optimization model in terms of the average cultivation area (a relative change of 2.1%), while lower agricultural water allocation occurred for the grand coalition model (about 10.35 percent average) compared with the multi-objective optimization model. It is also observed that more agricultural benefit gained by the grand coalition model (32 percent average). Finally, it is found that Wheat and Corn hold the most rates of import and export, respectively, and Rice was the crop which has the least shortage of production to supply food demand.

Effects of Oak Chip Treatments on Quality of Dry White Wines During Aging

“…The relationship between phenols and antioxidant capacity can be demonstrated by a multivariate statistical analysis, the multivariate statistical analysis is generally used to evaluate the correlation between variables. For example, a multi-objective optimization model is developed to allocate the agricultural and environmental water (Sedghamiz et al, 2018). The phenolic substances in wine differ with the variety of grapes, brewing process and method of aging.…”

A novel data-driven analytical framework on hierarchical water allocation integrated with blue and virtual water transfers

“…Under government guidance, regional sector usage managers have the right to reallocate/sell their surplus water to other sector managers, with the transfer prices decided through negotiations between the transfer participants (Dai et al, 2017;Ahmadi et al, 2019;Wang, 2018). Multi-objective programming has been extensively used to resolve water allocation conflicts of competing water usage sectors (Sedghamiz et al, 2018a;Brown et al, 2015). Nash (1953) proposed a two-player bargaining game for cooperative resource sharing, after which Harsanyi (1959Harsanyi ( , 1963 and Sedghamiz et al (2018b) generalized the Nash solution from a two-player bargaining game to an n-player game, which was more suitable for the multiplestakeholder non-cooperative situation.…”

A novel data-driven analytical framework on hierarchical water allocation integrated with blue and virtual water transfers

“…Both hierarchical decision makers have different decision preferences. Sedghamiz et al (2018a) considered the objectives that consisted of equity maximization, agricultural benefit maximization for each region, maximization of green water utilization and minimization of environmental shortages. Qi et al (2018) maximized the water requirement satisfaction index of agents at the superior level and constructed a subordinate model based on the Nash bargaining model.…”