Simulation-optimization model for non-point source pollution management in watersheds: Application of cooperative game theory

A new cooperative watershed management methodology is designed for developing an equitable and efficient Best Management Practice cost allocation among landowners in a watershed. The approach intends to control the total sediment yield in the watershed, considering landowners' conflicting interests. Wet detention ponds, are considered as the only available options to the landowners. The quality of the storm water is evaluated by the Total Suspended Solid loading from the watersheds. The proposed methodology combines a watershed simulation model, named Soil Water Accounting Tool (SWAT), with an Ant Colony Optimization (ACO) module and the cooperative game theory approach. Integration of SWAT and ACO modules provide the best set of designs for any constraints on target sediment removal set forth by non-cooperative and cooperative behaviors of the stakeholders to participate in the coalition to minimize the total cost of management practice. Nash Bargaining Theory is used to investigate how the maximum saving on cost of the participating players in a coalition can be fairly allocated. The proposed method is illustrated by a hypothetical example. The results demonstrate the applicability of the methodology. For the hypothetical case example, the proposed methodology with grand coalition leads to approximately 48 percent cost saving.