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Sustainable Lake Basin Water Resource Governance in China: The Case of Tai Lake

Author

Listed:
  • Zhengning Pu

    (School of Economics and Management, Southeast University, 2 Si Pai Lou, Nanjing 210000, China)

  • Hui Wang

    (WHU otto Beisheim School of Management, Burgplatz 2, 56179 Vallendar, Germany)

  • Haili Bian

    (School of Economics and Management, Southeast University, 2 Si Pai Lou, Nanjing 210000, China)

  • Jiasha Fu

    (Academy of Development and Strategy, Renmin University of China, Zhong Guan Cun Rd. 59, Beijing 100872, China)

Abstract

China’s water pollution is severe and has a negative impact on its residents. Establishing an emissions trading mechanism will be helpful for reducing the pollution. However, the government in China controls the emission rights market. The “GDP Only” preference blocks equitable rules to address the externalities. To modify this distortion, we develop a multi-objective primary distribution model that optimizes economic efficiency, environmental contribution, and fairness. In addition, the geographical location of a company and the industry differential are two key factors that would affect the local government’s decision. According to the simulation results using data from Tai Lake in China, this model can effectively help to meet the political expectation that large-scale manufacturers with poor technology can take the initiative to reduce emissions through emission-rights distribution.

Suggested Citation

  • Zhengning Pu & Hui Wang & Haili Bian & Jiasha Fu, 2015. "Sustainable Lake Basin Water Resource Governance in China: The Case of Tai Lake," Sustainability, MDPI, vol. 7(12), pages 1-13, December.
    • Handle: RePEc:gam:jsusta:v:7:y:2015:i:12:p:15824-16434:d:60476
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    References listed on IDEAS

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    Cited by:

    1. Yongrok Choi & Malin Song & Seunghwan Myeong, 2016. "Introduction to the Special Issue on the Sustainable Asia Conference 2015," Sustainability, MDPI, vol. 8(3), pages 1-9, March.
    2. Gang Liu & Weiqian Wang & Kevin W. Li, 2019. "Water Footprint Allocation under Equity and Efficiency Considerations: A Case Study of the Yangtze River Economic Belt in China," IJERPH, MDPI, vol. 16(5), pages 1-24, March.

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