Cooperation Machanism Design of Water Environmental Management for River Basin Based on Game Theory

The conflict of water resources environment becomes the important factors of endangering the peace and stability of regions and restricting the sustainable development of river basin. To mitigate the conflict of water resources for river basin and to promote the negotiation and cooperation between parties has become one of the important duties of water resources management. This paper aims to the promotion problem of voluntary environmental cooperation among regions in a river basin by means of optimal control theory and game theory. Based on the cooperative and non- cooperative differential game models of water environmental management in a river basin, in which the (gross) amount of effluent of the parties as the control variables and the stock in downstream as the state variable, the generalized formula of side-payment of promoting voluntary environmental cooperation among regions is given and a water environmental management example in a simplified frame is given to verify the validity of the model. These provide the theoretical basis for the water resources management.