Owa Aggregation to Determine the Water Equilibrium Price in the Tancítaro Area

Abstract

The growth of the population in the world requires a greater demand for all resources to satisfy food needs. As expected, water is the main element for developing production processes. This situation is dire in The Tancítaro peak, located in Michoacán (Mexico). This region is one of the highest producers of avocado, a plant whose water requirements are very high. The natural resources are the same, year after year, and the water requirements are becoming higher and higher. It is not only a question of availabilities; it is also a question of quality. The main problem is that the native people who inhabit the high basin are the actual water owner and are getting without this essential element. This paper aims to solve this problem by proposing the payment for the use of the water to reduce its consumption and provide funds to improve the quality of the water. As no market exists in the area, we want to create an artificial market using the willing to pay methodology combined with the Ordered Weighting Average (OWA) and with the level of confidence assigned to each expert. Due to the level of uncertainty inherent in the experts' answers, fuzzy logic will be beneficial to deal with this uncertainty. The results obtained show an equilibrium price of $ 0.5650 $ m-3. We want to point out that these are preliminary results, and the main objective of the work is to present a methodological proposal.