Analysis of water supply and usage cooperation strategies and evolutionary game among multiple stakeholders in water network

Abstract

Study region

Cooperation in water supply and usage under the national water network construction framework in China.

Study focus

The development of water network projects can significantly alleviate water resource scarcity while enhancing the regional carrying capacity of water resources. The effectiveness and efficiency of water supply through these networks depend on the cooperation of multiple stakeholders, including water source transferring areas, receiving areas, and the operation of the water network infrastructure itself. This study integrates China’s current practices in water network construction and operation, identifies three typical water supply modes, and analyzes the behavioral strategies of stakeholders. Evolutionary game models are developed to explore the stable evolutionary pathways for cooperation in water supply and usage.

New hydrological insights for the region

The water usage strategies of water receiving areas significantly influence the stable evolution strategies of tripartite game system. Both supply-side competition and demand-side competition can ultimately evolve into water price competition. The business strategies of enterprises are highly uncertain, and when they possess strong bargaining power, there is a high probability of water supply price increases. Therefore, price regulation measures are essential to safeguard social welfare. To prevent the demand side from falling into price competition, it is recommended that mutual water usage negotiation mechanisms be established between water receiving areas, with higher-level government departments intervening in the macro-allocation of water resources. These insights provide valuable guidance for coordinating regional water demand, alleviating supply-demand contradictions, and reforming regional integrated water pricing.