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Dynamic Adjustment Model of the Water Rights Trading Price Based on Water Resource Scarcity Value Analysis

Author

Listed:
  • Xiao-yuan Wu

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

  • Feng-ping Wu

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

  • Fang Li

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

  • Xia Xu

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

Abstract

The formation of the water rights trading price is an important part of the water rights trading system. In order to continuously and dynamically reflect the social–economic development changes and water resource scarcity, herein, we discuss the dynamic adjustment of the water rights trading price from the perspective of water resource scarcity value analysis. First, we constructed the water resource scarcity evaluation index system from the four dimensions of the water resource natural endowment, the water resource supply, the water resource demand, and the water environment, and then we constructed the water resource scarcity index calculation model of the transferor, the transferee, and the comprehensive water resource scarcity index calculation model of both parties of the trading. Second, by analyzing the 30 comparable water rights trading cases in China since 2016, we established the response function of the water rights trading price to the water resource scarcity index, and then we analyzed the impact mechanism of the water resource scarcity index on the water rights trading price. Third, based on the two factors of “the water resource scarcity value” and “the capital time value,” we constructed a dynamic price adjustment model of water rights trading for different adjustment factors, so as to adjust the water rights trading price scientifically. Finally, we took the water rights trading in Helan County (Helan) of Ningxia Hui Autonomous Region (Ningxia) as an example. The research shows that: (1) During the trading period of water rights in Helan, the water resource scarcity index rises, and the water rights trading price should be increased year-by-year. Additionally, there are certain differences in the water rights trading price changes with the adjustment of different elements. Among them, considering the adjustment of “the water resource scarcity value” element, the water rights trading price of Helan should be increased from 1.0940 to 2.8574 CNY/m³ during the water rights trading period; (2) there are differences in the water rights trading cost under different payment modes, among which the annual payment mode increased the most, i.e., from 2.7350 × 10 8 to 7.4500 × 10 8 CNY. This study suggests exerting a regulating effect of the water scarcity value on the water rights trading price, so as to promote the construction of a more equitable and long-term water rights trading market.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:5:p:2281-:d:505835
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    References listed on IDEAS

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    1. Sebastián Vicuña & Marina Gil & Oscar Melo & Guillermo Donoso & Pablo Merino, 2018. "Water option contracts for climate change adaptation in Santiago, Chile," Water International, Taylor & Francis Journals, vol. 43(2), pages 237-256, February.
    2. Chunsheng Wu & Gaohuan Liu & Chong Huang & Qingsheng Liu & Xudong Guan, 2018. "Ecological Vulnerability Assessment Based on Fuzzy Analytical Method and Analytic Hierarchy Process in Yellow River Delta," IJERPH, MDPI, vol. 15(5), pages 1-14, April.
    3. 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.
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    Cited by:

    1. Wu, Zheng & Tian, Guiliang & Xia, Qing & Hu, Hao & Li, Jiawen, 2023. "Connotation, calculation and influencing factors of the water-use rights benchmark price: A case study of agricultural water use in the Ningxia Yellow River irrigation area," Agricultural Water Management, Elsevier, vol. 283(C).
    2. Ran Zhu & Yiping Fang, 2022. "Application of a Water Supply-Demand Balance Model to Set Priorities for Improvements in Water Supply Systems: A Case Study from the Koshi River Basin, Nepal," IJERPH, MDPI, vol. 19(3), pages 1-16, January.

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