2.4.1. Allocation of Regulatory Fines Based on Surface Water Applied

This allocation scheme simply suggests that each polluter (subarea) will be charged in proportion to the volume of surface water applied on that subarea. Therefore, the cost to subarea *j* is

$$\Theta\_{\dot{j}} = F \frac{\mathcal{S} \mathcal{W}\_{\dot{j}}}{\sum\_{\dot{j} \in \mathcal{N}} \mathcal{S} \mathcal{W}\_{\dot{i}}} \tag{9}$$

where Θ*<sup>j</sup>* is the regulatory fine allocated to subarea *j*; *F* is total regional regulatory fine. This scheme allocates all the regulatory fine among all *N* subareas. *SWj* is the volume of surface water applied for irrigation in subarea *j* (a summation over all irrigated area). The disadvantage of this regulatory method is that it does not target those stakeholders who physically discharge to the SJR and not take into account the significant reuse that occurs in some areas that helps to curtail salt loading to the river. It is a blunt policy instrument that is nonetheless relatively easy to administer.
