IDL-BNC @ IDRC >
IDRC / CRDI >
IDRC Research Results / Résultats de recherches du CRDI >

Please use this identifier to cite or link to this item: http://hdl.handle.net/10625/46030

Title: Transaction costs in water markets in China's Heihe River Basin
Authors: Junlian Zhang
Keywords: GROUNDWATER
WATER USE RIGHTS (WUR) SYSTEM
WIDESPREAD DESERTIFICATION
WATER CONSERVATION
ZHANGYE CITY
TRANSACTION COSTS
GANSU PROVINCE
SOCIAL AND ADMINISTRATIVE PROBLEMS
HEIHE RIVER
NORTHWEST CHINA
WATER QUOTA
Issue Date: 2005
Publisher: EEPSEA, IDRC Regional Office for Southeast and East Asia, Singapore, SG
Series/Report no.: EEPSEA research report series / IDRC. Regional Office for Southeast and East Asia, Economy and Environment Program for Southeast Asia; no. 2005-RR7
Abstract: This study assesses the transaction cost related to the Water Use Rights (WUR) system that is in operation in Zhangye City, Gansu Province, Northwest China. The study was carried out to see whether these costs were a significant barrier to a properly functioning system, and, if this was the case, to see what could be done to reduce them. Zhangye City is severely short of water. It is located in one of the driest areas in the world and is mainly watered by the Heihe River. Almost all the water from this river is currently extracted for irrigation and this has caused widespread desertification. The WUR system, the first of its kind in China, was introduced in 2002 to try and distribute water fairly and efficiently between agriculture and industry. Under the system, every water user gets a water quota fixed by the government. These quotas can be traded. Farmers and officials in the area were interviewed to get information and opinions on the effectiveness of the scheme. Transaction costs for both the implementation of the system itself and the WUR trading scheme was assessed. It was found that transaction costs were a significant barrier to the proper functioning of the system. It was also found that these costs were linked to the key social and administrative barriers that stand in the way of the system working properly. In light of this, the study advises that to bring transaction costs down – and improve the implementation of the scheme – these social and administrative problems must be tackled head on.
URI: http://hdl.handle.net/10625/46030
Project Number: 003591
Project Title: EEPSEA (Economy and Environment Program for South East Asia) - Phase III
Appears in Collections:IDRC Research Results / Résultats de recherches du CRDI
2000-2009 / Années 2000-2009

Files in This Item:

File Description SizeFormat
132516.pdf
134.79 kBAdobe PDF

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.

 

Valid XHTML 1.0! DSpace Software Copyright © 2002-2010  Duraspace - Feedback