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Does Water Rights Trading Promote Economic Efficiency of Water Resource? : A global literature review

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  • Zhang, Chunmei
  • Zhao, Yuanfeng
  • Xiu, Changbai

Abstract

Agricultural water rights trading, the main part of water rights trading, is seen as a critical way to promote water utilization efficiency and allocation efficiency and then to ease global water shortage . However, the actual performance of water rights trading is far below the optimistic expectation by the academia. This paper summarizes 6 main topics discussed by global academia .Answers about whether water rights trading can promote economic efficiency of water resource are discussed in the paper.It is obvious that current academic research does not explore deep enough about the water rights trading mechanism and thus cannot provide deep insights and absolute evidence to show water rights trading indeed promote the economic efficiency of water resource. Shortcomings of current research are summarized in this thesis, and they are: (1) lack of multi-angle theoretical perspective; (2) lack of applied theories; (3) lack of robust evidence; (4) lack of exploration of government’s behavior and dynamics of institutional reform. Future research topics should be broadened and deeply explored are: (1) broaden the theoretical horizons; (2) put the theories down to the earth; (3) carry out robust positive research; (4) explore deeply about government’s behavior mechanism in water management and water rights trading market cultivation.

Suggested Citation

  • Zhang, Chunmei & Zhao, Yuanfeng & Xiu, Changbai, 2020. "Does Water Rights Trading Promote Economic Efficiency of Water Resource? : A global literature review," Conference papers 333128, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:333128
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    References listed on IDEAS

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