Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
Among five countries in the Northeast Asia (NEA), China, Japan, Mongolia, Russia, and South Korea, there has been a long discussion on the construction of the NEA Supergrid to optimize the use of energy resources. In this paper, we study whether the NEA Supergrid plan in 2030 is beneficial to five countries and if so, how to allocate its benefit to each country in a fair and stable way. By formulating various scenarios on the transmission capacity and the maximum amount of imported power by each country, we search for the optimal network structure when the total benefit is allocated by using the Myerson (1977) value. First, we show that the Myerson value allocation for the 2030 plan satisfies core stability so that no subgroup of countries have incentives to leave the plan. However, it does not satisfy pairwise stability, so that some countries have incentives to modify the network structure. In fact, China and Japan can be better off by adding a new transmission line between them. If this line is added to the plan, then the Myerson value allocation becomes both core stable and pairwise stable. A similar result is obtained for the nucleolus (Schmeidler, 1969).