Coalition formation among regions to the reuse of waste soil for construction

Many cities face the issue of waste disposal in Japan. Wastes, particularly the surplus soil at construction sites, used to be dumped straightly to a stockyard like a reclaimed land but it becomes difficult to find other yards in and near the urban area. They necessarily choose another way of disposal, such as reduction, reuse and/or reform of wastes. Some regions may cooperate with others, considering the efficiency of the (cooperative) disposal process and the bad effect of undisposed polluted soils. The study provides a game-theoretic framework of analyzing the formation of such coalitions among regions for the reuse of waste soil for construction. The consequence of coalition formation is concerned with the local policies of how each region regulates and/or supports the related agents (i.e., dischargers). We also analyze the possibility of extending coalitions by a private agent to charge regions for participation