Feasibility analysis of water resources market transaction of water diversion project based on evolutionary game

Water diversion project realize the change of water right ownership by diverting water resources, but most of the water diversion projects are dominated by the government in the operation stage, which can't realize complete market-oriented transaction of resources. In this study, the water source area, project management department and users involved in water resources trading of water diversion project are regarded as stakeholders, and an evolutionary game model is established to analyze the feasibility and restrictive conditions of the free trading of water resources in the water diversion project. The research results show that the three parties can realize the balance and stability of interests (water source area supplies good water, project management department supplies sufficient water, users take water according to the supply), which means that the feasibility of water market transactions. Meanwhile, it also gives clear restrictions on the water price of three parties transaction, project management department buys water price is less than on the premise of lower than + , sells water price is not higher than The free trading of water resources in the water diversion project under the market mechanism is of great significance for clarifying the water rights and reducing the financial pressure of the government.

‘Overuse-charge’ agricultural water price mechanism in groundwater overdraft areas

The irrigation water price is an indispensable element for the modernization of agriculture and the realization of rural revitalization. As a pilot initiative for agricultural water price reform, Hebei Province has explored various effective patterns. This study analyzed 714 first-hand data points obtained from agricultural irrigation areas in Hebei Province. The ‘two lines and three grades’ water price policy is difficult to implement in practice. The ‘overuse-charge’ includes two levels of water use standards, the water price and reward standards in each level are inconsistent, especially, actual irrigation water use far more than Individual Allowable Water Volume (IAWV). Similarly, there is a negative relationship between irrigation water use and water fees at the critical point of IAWV, that is, the more water used, the less water fees paid. The ‘one line and two grades’ water price policy is proposed. The water volume less than the irrigation quota should be purchased by the government or rewarded farmers, on the contrary, the water price should be increased. It is suggested to improve the installation of irrigation metering facilities, popularization of field water-saving technology and quota management in the groundwater water irrigation region.

Research on Key Issues of China’s Project Water Price

Focusing on China’s current water price issues, such as “difficulty in pricing, adjustment, charging, and effectiveness” and the others, the current water conservancy project water supply system has been sorted out in terms of water price formation mechanism, water price composition, influencing factors, price system structure, and pricing technology. Quantitative analysis has been carried out on the problems with prices. At the same time, based on the experience and lessons of similar policies and system reforms at home and abroad, the study puts forward the long-term mechanism of water fee collection and subsidy and the implementation of safeguard measures and recommendations for the water supply price system of water conservancy projects.

A case study on water price calculation of key projects at Fenglinwan irrigation areas in JiangXi Province, China

Reasonable water price plays an important role in the healthy operation of an irrigation area. This study evaluates the current operation and management of Fenglinwan irrigation area in JiangXi Province, including implementation of agricultural water price, employee salary, current comprehensive agricultural water price and investment of engineering facilities. The cost of agricultural water supply of key project in irrigation area and the total cost of irrigation area were calculated to measure the agricultural water price. The result shows that the cost which has been spent for operation and maintenance of irrigation area was about 3.76 million yuan per year and the total cost for irrigation area was about 5.33 million yuan per year. The excessive number of employees and low wage level have greatly affected the work enthusiasm of employees. The cost of engineering maintenance was too small to guarantee the good operation of irrigation and water conservancy projects. The current implementation of agricultural water price which is about 20 yuan per mu is lower than the evaluated operation and maintenance cost for agricultural water supply which is 71.13 yuan per mu. A part of that, the current comprehensive agricultural water price which is 49.20 yuan per mu is also lower than the whole cost for agricultural water supply which is about 100.87 yuan per mu. Neither the current implementation of agricultural water price nor the current comprehensive agricultural water price can meet the basic requirements of operation and management.

Groundwater Extraction in the South Korea’s Jeju Island: A Real Options Game Approach under Price Uncertainty

This paper uses a standard non-cooperative sequential game with two homogeneous players to analyze investment options of groundwater development project in South Korea’s Jeju island. The model is constructed as an option game taking the uncertainty of water price and the irreversibility of investment into account. The results show that the threshold water price of follower increases with the investment scale of both the leader and the follower while the threshold water price for the leader decreases as the investment scale of the leader increases. This makes the leader choose strategies to maximize the amount of groundwater extraction regardless of the follower’s strategy. Based on the results, it is recommended for policymakers to manage sustainable use of groundwater based on the policy measures such as the groundwater extraction quota system.

Water policy and regional economic development: evidence from Henan province, China

With the rapid advance of industrialization and urbanization and the intensified impact of global climate change, the contradiction between the global water shortage and economic growth has become prominent. This paper, taking Henan province as an example, analyzed the influence of water resource policy on regional economic growth through a calculable general equilibrium model and further discussed the relevant policy recommendations. The results showed that the improvement of water supply, water efficiency and water technology could promote the growth of the regional economy and result in a positive effect on regional GDP, employment and resident income. However, the rise of water price has a negative impact on regional economic development, mainly reflected in regional GDP, employment and household income. The improvement of water price, water efficiency and water conservancy technology would lead to a decrease in regional water consumption, while only the increase of the water supply would lead to an increase in water consumption. Accordingly, the paper put forward policy suggestions, such as accelerating the improvement of water conservancy facilities, establishing a reasonable water price mechanism and actively exploring experience in water conservation and emission reduction.