Abstract
This paper discusses the methods of allocating costs of water resources development projects. A focus is placed on theoretical properties of cost functions. It is shown that justifiability of conventional methods such as the well-known SCRB method depends very much on the ex- tent to which they comply with a set of theoretical prop- erties selected. Two types of water resources projects, multi-reservoir development and regional sewage system development are selected and some basic analyses are performed to examine their theoretical properties of cost functions.
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