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Standardization of Exchanged Water with Different Properties in China’s Water Rights Trading

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  • Junyuan Shen

    (Business School, Hohai University, Nanjing 211100, China
    National Engineering Research Center of Water Resources Efficient Utilization and Engineering Safety, Nanjing 210098, China)

  • Fengping Wu

    (Business School, Hohai University, Nanjing 211100, China
    National Engineering Research Center of Water Resources Efficient Utilization and Engineering Safety, Nanjing 210098, China)

  • Qianwen Yu

    (Business School, Suzhou University of Science and Technology, Suzhou 215009, China
    Department of System Designing Engineering, University of Waterloo, Waterloo, ON N2L 3G1, Canada)

  • Zhaofang Zhang

    (College of Economic and Management, China Three Gorges University, Yichang 443002, China)

  • Lina Zhang

    (National Engineering Research Center of Water Resources Efficient Utilization and Engineering Safety, Nanjing 210098, China
    Business Administration School, Hohai University, Changzhou 213022, China)

  • Min Zhu

    (Business School, Hohai University, Nanjing 211100, China
    National Engineering Research Center of Water Resources Efficient Utilization and Engineering Safety, Nanjing 210098, China)

  • Zhou Fang

    (Business School, Hohai University, Nanjing 211100, China)

Abstract

Water rights trading is an effective way to optimize the allocation of water resources. However, the existing practice of water rights trading in China lacks any consideration of the practical value of the exchanged water. This deficiency may lead to disputes between transferor and transferee during the implementation of the water rights trading contract. This paper puts forward the concept of Standard Water (SW). First, getting the original value of exchanged water by the shadow price model based on input-output table; Second, based on the original value, building the economic profits or costs model to obtain the practical value of exchanged water; Third, establishing SW quantity measurement model according to the principle of rewarding excellence and punishing inferiority, so as to convert the water quantity of exchanged water into SW quantity. With the standardization method, this paper takes the water rights transaction between Dongyang City and Yiwu City in 2000 as an example to carry out case study, and provides policy recommendations. The results show that when the contract requires the provision of 49.999 million m 3 water of Class I the quality, if the exchanged water quality provided is in Class II-V, the corresponding SW will be decreased to 48.699–37.399 million m 3 . The application of this research will be conducive to ensuring the fairness and durability of the water rights trading processes.

Suggested Citation

  • Junyuan Shen & Fengping Wu & Qianwen Yu & Zhaofang Zhang & Lina Zhang & Min Zhu & Zhou Fang, 2020. "Standardization of Exchanged Water with Different Properties in China’s Water Rights Trading," IJERPH, MDPI, vol. 17(5), pages 1-19, March.
    • Handle: RePEc:gam:jijerp:v:17:y:2020:i:5:p:1730-:d:329300
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    References listed on IDEAS

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    Cited by:

    1. Xiao-yuan Wu & Feng-ping Wu & Fang Li & Xia Xu, 2021. "Dynamic Adjustment Model of the Water Rights Trading Price Based on Water Resource Scarcity Value Analysis," IJERPH, MDPI, vol. 18(5), pages 1-22, February.
    2. Chen, Xiang-nan & Li, Fang & Wu, Feng-ping & Xu, Xia & Zhao, Yue, 2023. "Initial water rights allocation of Industry in the Yellow River basin driven by high-quality development," Ecological Modelling, Elsevier, vol. 477(C).

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