IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i23p16214-d1285690.html
   My bibliography  Save this article

Study on the Optimal Allocation of Water Resources Based on the Perspective of Water Rights Trading

Author

Listed:
  • Guangyao Wang

    (College of Water Conservancy and Environment, University of Jinan, 336 Nanxinzhuang West Road, Shizhong District, Jinan 250022, China)

  • Xinyue Zhang

    (State Key Laboratory of Simulation and Regulation of Water Cycle in River Basin, A-1 Fuxing Road, Haidian District, Beijing 100038, China
    China Institute of Water Resources and Hydropower Research (IWHR), A-1 Fuxing Road, Haidian District, Beijing 100038, China)

  • Lijuan Du

    (State Key Laboratory of Simulation and Regulation of Water Cycle in River Basin, A-1 Fuxing Road, Haidian District, Beijing 100038, China
    China Institute of Water Resources and Hydropower Research (IWHR), A-1 Fuxing Road, Haidian District, Beijing 100038, China)

  • Bo Lei

    (State Key Laboratory of Simulation and Regulation of Water Cycle in River Basin, A-1 Fuxing Road, Haidian District, Beijing 100038, China
    China Institute of Water Resources and Hydropower Research (IWHR), A-1 Fuxing Road, Haidian District, Beijing 100038, China)

  • Zhenghe Xu

    (College of Water Conservancy and Environment, University of Jinan, 336 Nanxinzhuang West Road, Shizhong District, Jinan 250022, China)

Abstract

Water rights trading plays an important role in the market mechanism to optimize the allocation of water resources. This study takes Luxian county of Sichuan province as the research area. Based on the prediction of water supply and demand, this study aims to achieve minimum water shortage and maximum economic benefits for regional water distribution, and introduces a water-saving reward and water price punishment mechanism to construct a two-layer collaborative regulation model of water rights trading for water users. The self-improved elite strategy and cogenetic algorithm (NSGA II-S) are used to solve the optimization model, and the optimal allocation of water resources and water rights trading in different towns in the planning year (2025 and 2030) under different flat and dry scenarios is studied. The results show that there would be an obvious problem in the uneven distribution of water resources between supply and demand in 2025 and 2030. The overall water shortage rates in the flat and dry scenario areas in 2025 are 13.71% and 31.99%, respectively, and the overall water shortage rates in the flat and dry scenario areas in 2030 are 11.55% and 31.94%, respectively. Water rights trading can increase the economic benefit value, with the economic benefit increasing by an average of CNY 614 million in all scenarios, an average increase of 8.68%. The research results could be helpful in alleviating the contradiction between the supply and demand of regional water resources and provide a theoretical basis for optimizing water resource allocation by means of water rights trading in the region.

Suggested Citation

  • Guangyao Wang & Xinyue Zhang & Lijuan Du & Bo Lei & Zhenghe Xu, 2023. "Study on the Optimal Allocation of Water Resources Based on the Perspective of Water Rights Trading," Sustainability, MDPI, vol. 15(23), pages 1-19, November.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:23:p:16214-:d:1285690
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/23/16214/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/23/16214/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chen, Xiang-nan & Wu, Feng-ping & Li, Fang & Zhao, Yue & Xu, Xia, 2022. "Prediction and analysis of water rights trading volume: Based on the water rights trading in Inner Mongolia, China," Agricultural Water Management, Elsevier, vol. 272(C).
    2. Donna Brennan, 2006. "Water policy reform in Australia: lessons from the Victorian seasonal water market ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(3), pages 403-423, September.
    3. Rosegrant, Mark W. & Binswanger, Hans P., 1994. "Markets in tradable water rights: Potential for efficiency gains in developing country water resource allocation," World Development, Elsevier, vol. 22(11), pages 1613-1625, November.
    4. Brennan, Donna C., 2006. "Water policy reform in Australia: lessons from the Victorian seasonal water market," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(3), pages 1-21, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ansink, Erik & Houba, Harold, 2012. "Market power in water markets," Journal of Environmental Economics and Management, Elsevier, vol. 64(2), pages 237-252.
    2. Yi Liu & Peng Li & Zhiwei Zhang, 2018. "Resilient or Not: A Comparative Case Study of Ten Local Water Markets in China," Sustainability, MDPI, vol. 10(11), pages 1-16, November.
    3. Sarah Wheeler & Henning Bjornlund & Martin Shanahan & Alec Zuo, 2008. "Price elasticity of water allocations demand in the Goulburn-Murray Irrigation District ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(1), pages 37-55, March.
    4. Robert Brooks & Edwyna Harris & Yovina Joymungul, 2013. "Price clustering in Australian water markets," Applied Economics, Taylor & Francis Journals, vol. 45(6), pages 677-685, February.
    5. Changhai Qin & Shan Jiang & Yong Zhao & Yongnan Zhu & Qingming Wang & Lizhen Wang & Junlin Qu & Ming Wang, 2022. "Research on Water Rights Trading and Pricing Model between Agriculture and Energy Development in Ningxia, China," Sustainability, MDPI, vol. 14(23), pages 1-15, November.
    6. M. Ejaz Qureshi & Jeff Connor & Mac Kirby & Mohammed Mainuddin, 2007. "Economic assessment of acquiring water for environmental flows in the Murray Basin ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(3), pages 283-303, September.
    7. Sarah Ann Wheeler, 2022. "Debunking Murray‐Darling Basin water trade myths," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(4), pages 797-821, October.
    8. Wheeler, Sarah Ann & Zuo, Alec & Bjornlund, Henning, 2014. "Investigating the delayed on-farm consequences of selling water entitlements in the Murray-Darling Basin," Agricultural Water Management, Elsevier, vol. 145(C), pages 72-82.
    9. Craig D. Broadbent & David S. Brookshire & Don Coursey & Vince Tidwell, 2017. "Futures Contracts in Water Leasing: An Experimental Analysis Using Basin Characteristics of the Rio Grande, NM," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 569-594, November.
    10. Loch, Adam & Bjornlund, Henning & Wheeler, Sarah & Connor, Jeff, 2012. "Allocation trade in Australia: a qualitative understanding or irrigator motives and behaviour," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(1), pages 1-19, March.
    11. Raffensperger, John F., 2011. "Matching users' rights to available groundwater," Ecological Economics, Elsevier, vol. 70(6), pages 1041-1050, April.
    12. Huong Dinh & Manannan Donoghoe & Neal Hughes & Tim Goesch, 2019. "A micro-simulation model of irrigation farms in the southern Murray-Darling Basin," Papers 1903.05781, arXiv.org.
    13. Robert Brooks & Edwyna Harris & Yovina Joymungul, 2009. "Market depth in an illiquid market: applying the VNET concept to Victorian water markets," Applied Economics Letters, Taylor & Francis Journals, vol. 16(13), pages 1361-1364.
    14. Guilfoos, Todd & Garnache, Cloe & Suter, Jordan F. & Merrill, Nathaniel H., 2017. "Efficiency Gains Arising from Dynamic Groundwater Markets," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258438, Agricultural and Applied Economics Association.
    15. David Adamson & Adam Loch, 2018. "Achieving environmental flows where buyback is constrained," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(1), pages 83-102, January.
    16. Donna Brennan, 2008. "Missing markets for storage and the potential economic cost of expanding the spatial scope of water trade," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(4), pages 471-485, December.
    17. Neal Hughes & Manannan Donoghoe & Linden Whittle, 2020. "Farm Level Effects of On‐Farm Irrigation Infrastructure Programs in the Southern Murray–Darling Basin," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(4), pages 494-516, December.
    18. Chi Truong, 2012. "An Analysis of Storage Capacity Reallocation Impacts on the Irrigation Sector," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(1), pages 141-159, January.
    19. Massimo Peri & Daniela Vandone & Lucia Baldi, 2017. "Volatility Spillover between Water, Energy and Food," Sustainability, MDPI, vol. 9(6), pages 1-16, June.
    20. Claire Settre & Jeff Connor & Sarah Ann Wheeler, 2017. "Reviewing the Treatment of Uncertainty in Hydro-economic Modeling of the Murray–Darling Basin, Australia," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-35, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:23:p:16214-:d:1285690. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.