Cost allocation in dam removal project

Abstract

In many countries, the dam is removed in consideration of several reasons such as safety. When removing dam, polluted sedimentation flowed out the dam may have the impact to the environment of the river and sea. Thus dam owners may prefer to wait removal rather than remove now. This is because they are motivated to wait in order to leam the impact caused by other owners' removal. In this case, the dams may not be removed efficiently. We discuss the cost allocation which leads the efficient dam removal by using dynamic game.