Title: Analysis on the Efficiency of Water Right Trade
Abstract: Water right trade belongs to market mechanism.This paper establishes mathematical model to analyze the efficiency of water right trade.And the mathematical analysis indicates that water right trade can be used to improve allocation efficiency of water resources and net profits of water users,that is,the efficiency in using water is higher when water rights are able to be transacted than that when water rights are unable to be transacted.However,due to the special properties of water,there exists great exterior effects in the transaction of water rights,which may lead to excessive transaction cost,thus making the transaction of water rights infeasible.Therefore,various laws and regulations should be enacted to define transaction agents' rights and responsibilities so as to prevent the negative effect of water right transaction on environment and water users and improve the allocation efficiency of water resources in the circumstance where two transactions sides of water right transaction obtain profits.
Publication Year: 2009
Publication Date: 2009-01-01
Language: en
Type: article
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