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http://dx.doi.org/10.3741/JKWRA.2014.47.7.629

Cost Allocation among Local Governments for Environmental Infrastructure: A Case Study of Sewage Treatment Plant  

Kim, Chong Won (Korea Research Institute for Human Settlements)
Han, Dong Geun (School of Economics and Finance., Yeungnam Univ.)
Publication Information
Journal of Korea Water Resources Association / v.47, no.7, 2014 , pp. 629-641 More about this Journal
Abstract
This study explores methods of allocating costs incurring from construction of environmental infrastructure among local governments involved in the project. Principles for equitable cost-allocation are reviewed, and pros/cons associated with different methods are examined. Proportional Allocation method, Shapley Value method, SCRB (Separable Cost-Remaining Benefits) method are applied to a case of swage treatment plant in Gyeongnam province region, Korea. It is found that the SCRB method produces the most equitable result, followed by Shapley method. The Proportional Allocation method, although easy to understand and simple to calculate, is found to be skewed in favor of small town.
Keywords
Cost allocation; SCRB; shapley; proportional method;
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Times Cited By KSCI : 1  (Citation Analysis)
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