Journal articles on the topic 'Water allocation trading'
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Jansouz, Parinaz, Javad Shahraki, and Mohammad Abdolhosseini. "Is water trading policy an effective solution for water allocation in Voshmgir dam?" Water Policy 19, no. 6 (August 14, 2017): 1119–42. http://dx.doi.org/10.2166/wp.2017.121.
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Abstract The aim of this study is to assess the effectiveness of water trading policy as a solution for optimal use of water between farmers in Voshmgir dam, Iran. For assessment, four villages were selected and two water allocation programs under non-trading and trading systems were designed by two-stage stochastic programming technique and uncertainties expressed as intervals and probability distributions. The results obtained from the two programs were compared based on water volume which is released through trading and decrease in water deficiency as effectiveness indices. The results show that the water allocation under trading policy has changed so that it has led to released water and decrease in water deficiency by keeping the agricultural profit under non-trading, but irrigated area is decreased under trading. Generally, trading policy can lead to more effective allocation from the view of released water and decrease in water deficiency, but it can remove some farmers from agricultural activities by decreasing the irrigated area. As a result, trading policy can be effective in the short term especially in drought conditions due to insufficient water supply and can be unnecessary in normal and wet years in this case study.
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Zhang, Wei Hua, Jun Ying Jin, and Ya Xin Han. "Effects of Water Trading on Main Crops in Beibei District, Chongqing." Applied Mechanics and Materials 409-410 (September 2013): 119–22. http://dx.doi.org/10.4028/www.scientific.net/amm.409-410.119.
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Water trading is an effective method for efficient allocation of water resources, so it is essential to assess the potential impacts of water trading before the establishment of water rights trading market. The improved water rights allocation method may low down the uncertainty, although there is lots of uncertainty in the water trading for agriculture. This study compared the effects of two-part deployment method on economic profits of main crops by Game Theory method. The results show that water trading may optimally allocate water resources, moreover, the total free market could increase economic profits as far as possible; the more water users participating in water trading, the more profits the water trading can bring.
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Liu, Yan, and Chao Shang. "Application of Blockchain Technology in Agricultural Water Rights Trade Management." Sustainability 14, no. 12 (June 8, 2022): 7017. http://dx.doi.org/10.3390/su14127017.
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Water is a basic and essential natural resource, and its rational allocation plays a key role in environmental and economic sustainable development. Agriculture consumes a large share of water resources, but the allocation of water rights often deviates from water use in reality. Therefore, an appropriate management method for agricultural water rights trading is needed. In this paper, blockchain technology is applied to address the agricultural water rights trading issue. Firstly, an alliance chain and the practical Byzantine fault tolerance (PBFT) consensus mechanism are adopted to support a smart contract and application. Then, a trading platform based on blockchain for agricultural water rights trading is proposed. Finally, the role and function of a decentralized autonomous organization (DAO) in a self-financing irrigation drainage district (SIDD) are clarified. This study provides a secure and stable platform which can reduce the trading confirmation time and support numerous users. The trading process of agricultural water rights is updated to minimize the cost of water rights’ transactions and improve the system’s efficiency.
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Zeng, X. T., Y. P. Li, G. H. Huang, and J. Liu. "A two-stage interval-stochastic water trading model for allocating water resources of Kaidu-Kongque River in northwestern China." Journal of Hydroinformatics 17, no. 4 (February 19, 2015): 551–69. http://dx.doi.org/10.2166/hydro.2015.090.
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In this study, a two-stage interval-stochastic water trading (TIWT) model is developed for reallocating water resources under uncertainty, which integrates techniques of interval-parameter programing and two-stage stochastic programing into a general framework. The TIWT model can provide an effective linkage between system benefit and the associated economic penalty attributed to the violation of the pre-regulated water permit under uncertainties expressed as probabilistic distributions and interval values. The trading scheme is introduced to optimize water allocation of Kaidu-Kongque River in northwestern China. Results obtained suggest that trading program can effectively allocate limited water resources to competitive users by market approach in such an arid area, which improves economic efficiency in the mass (e.g., maximizing system benefits) and remedies water deficiency. A number of policies for water permits are analyzed and reveal that different water permits lead to different water shortages, system benefits, and system-failure risks. Tradeoffs between economic benefit and system-failure risk are also examined under different policies, which support generating an increased robustness in risk control for water resources allocation under uncertainty. The results are helpful for local decision-makers in adjusting the current water allocation pattern optimally.
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Chen, Xiang-nan, Feng-ping Wu, Fang Li, Yue Zhao, and Xia Xu. "Analysis of Tradable Water Volumes of Industry in Water-Rich Areas of China: A Case Study of Changsha City." International Journal of Environmental Research and Public Health 18, no. 2 (January 14, 2021): 679. http://dx.doi.org/10.3390/ijerph18020679.
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Tradable water volumes is one of the basic elements of water-rights trading. In China, water-rights transactions mostly occur in water-deficient areas. However, the water-rich areas are also facing serious water-shortage problems. It is necessary to stimulate the water-rights trading power in abundant water areas to improve water-resource predicament. This paper studied the concept and calculation method of tradable water volumes of industry. First, based on the property rights theory, we analyzed the concept of tradable water volumes, and put forward the preliminary determination of water-rights trading subjects. Then, we defined the tradable water volumes of industry as the difference between the initial water-rights allocation and the water demand of industry. We used the proportion method to calculate the initial water-rights allocation of industry under different runoff frequencies, and grey model (1,1) to predict the water demand of industry. Finally, we applied the calculation method to Changsha city which is in a water-rich area of China. The calculation results contribute to water-resource management in Changsha city. This paper will provide a theoretical basis for researching the tradable water volumes, and promote the development of water-rights trading in China’s water-rich areas.
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Young, Michael D., and Darla Hatton MacDonald. "An opportunity to improve water trading in the South East Catchment of South Australia." Water Policy 5, no. 2 (April 1, 2003): 127–46. http://dx.doi.org/10.2166/wp.2003.0008.
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This paper outlines how an area-based water allocation system for irrigating crops could be converted to a system of shares, structured so as to allow the development of a low cost trading market for water and salinity shares. It stresses the need for separation of entitlements of water from land and the separation of water rights into their various components. By moving to this type of allocation system, combined with some safeguard provisions, trade in groundwater could be facilitated in the South East Water Catchment located in the State of South Australia. Separation of salinity and other environmental impacts from water volume trading will allow market assessment of highest and best use to include consideration of environmental impacts. Although the focus of the paper is on groundwater allocation and management, the principles and concepts outlined are applicable to surface water systems.
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Ghosh, Sanchari. "Economics of Water Trading in Consumptive Use." Journal of Natural Resources Policy Research 8, no. 1-2 (November 2018): 22–43. http://dx.doi.org/10.5325/naturesopolirese.8.1-2.0022.
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Abstract The economics of water trading in consumptive use has often overlooked the conservation incentives inherent in such trading when institutional rules like prior appropriation govern allocation of water. Utilizing an analytical framework of water trading between two irrigation water users employing irrigation techniques of similar efficiency, the study demonstrates how trade in consumptive use of water reduces incentives for greater diversion by users with prior claims to water, as compared with trade in water diverted. It also shows that such transfer increases the marginal value of water use for those users with junior (priority) claims to water rights. In addition, it explores the applicability of METRIC as a recent innovation in measuring consumptive water use at the field level, lowering the costs of water trading at a smaller spatial scale.
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He, Tianming, Chunxia Wang, Zonglan Wang, Xinlin He, Hongguang Liu, and Jia Zhang. "Assessing the Agricultural Water Savings–Economy–Ecological Environment System in an Arid Area of Northwest China Using a Water Rights Transaction Model." Water 13, no. 9 (April 29, 2021): 1233. http://dx.doi.org/10.3390/w13091233.
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As water trading has become increasingly used to optimize the allocation of water resources, it has become necessary to transfer agricultural water allocations for economic development and ecological environmental uses by way of water rights trading. In this paper, we constructed an example water rights trading model in the arid oasis area of Shihezi Irrigation District (located in Northwest China), using the field investigation method and governmental water management decisions based on the systems theory of the agricultural water savings–economy–ecological environment. Furthermore, focusing on the added industrial value produced by trading water, the value of the ecological services provided by fresh water, the negative value of the reduction in greenhouse gas emissions, and the negative ecological value of reduced fertilizer application, a quantitative analysis was carried out using the Shihezi Irrigation District as an example. The results showed that under the most stringent water resource management plan and with the objective of returning land and reducing water, the irrigation area can save 52,504,500 m3 of surplus water from the agricultural sector, of which 49,879,300 m3 can be reallocated to the industrial sector and 2,625,200 m3 can be reallocated to the ecological sector. Using the water rights transaction method, this regional agricultural water saving could generate an industrial benefit equal to 35,024,300 yuan, an ecosystem service equal to 19,482,200 yuan, and an overall benefit equal to 54,420,500 yuan. The water rights trading model proposed in this paper for an arid oasis areas can provide a reference for other arid areas, helping to achieve the sustainable economic development of the economic and ecological environments in arid oasis areas through water rights trading.
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Bi, Kanglei, and Lili Rong. "A research on the effectiveness of agricultural water rights allocation based on market orientation." E3S Web of Conferences 199 (2020): 00004. http://dx.doi.org/10.1051/e3sconf/202019900004.
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There are some problems in China’s agricultural water resources, such as low per capita consumption and uneven spatial and temporal distribution. It is urgent to speed up the reform of water rights trading mode. Based on the market orientation and the experience of the United States and Australia, this paper studies the effectiveness of China’s agricultural water rights trade. Firstly, the characteristics of “quasi-market” should be clarified. Secondly, under the market mechanism, this paper analyzes the mechanism of the impact of economic incentives of trading subjects, reasonable delimitation of trading prices and multiple participation of institutions and departments. Furthermore, the factors that affect the efficiency are deeply analyzed. At last, the paper provides some suggestions on the construction of a trading mechanism with Chinese characteristics from the aspects of right confirmation registration, pricing mechanism and supervision regulations, to provide decision support for agricultural water rights management system.
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Zhang, H. X. "Linking trading ratio with TMDL (total maximum daily load) allocation matrix and uncertainty analysis." Water Science and Technology 58, no. 1 (July 1, 2008): 103–8. http://dx.doi.org/10.2166/wst.2008.604.
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An innovative approach for total maximum daily load (TMDL) allocation and implementation is the watershed-based pollutant trading. Given the inherent scientific uncertainty for the tradeoffs between point and nonpoint sources, setting of trading ratios can be a contentious issue and was already listed as an obstacle by several pollutant trading programs. One of the fundamental reasons that a trading ratio is often set higher (e.g. greater than 2) is to allow for uncertainty in the level of control needed to attain water quality standards, and to provide a buffer in case traded reductions are less effective than expected. However, most of the available studies did not provide an approach to explicitly address the determination of trading ratio. Uncertainty analysis has rarely been linked to determination of trading ratio. This paper presents a practical methodology in estimating “equivalent trading ratio (ETR)” and links uncertainty analysis with trading ratio determination from TMDL allocation process. Determination of ETR can provide a preliminary evaluation of “tradeoffs” between various combination of point and nonpoint source control strategies on ambient water quality improvement. A greater portion of NPS load reduction in overall TMDL load reduction generally correlates with greater uncertainty and thus requires greater trading ratio. The rigorous quantification of trading ratio will enhance the scientific basis and thus public perception for more informed decision in overall watershed-based pollutant trading program.
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Bontems, Philippe, and Céline Nauges. "Production choices with water markets and risk aversion: the role of initial allocations and forward trading." European Review of Agricultural Economics 46, no. 4 (October 17, 2018): 579–608. http://dx.doi.org/10.1093/erae/jby033.
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Abstract We develop a theoretical model that describes risk-averse farmers’ decisions when facing production risk due to uncertain weather conditions and when irrigation water can be traded on a market. We focus on the role of initial water allocations granted to irrigated farms at the start of the season. The presence of water markets makes the future water price uncertain and hence the value of initial water allocations uncertain. We analyse the properties of this background risk and study how initial water allocations impact farmers’ land allocation decisions between an irrigated crop and a non-irrigated crop, both characterised by random expected net returns. We then extend the model by permitting irrigation water to be traded ex-ante at a known price (forward market). Finally, we illustrate our main theoretical findings using simulations. We calibrate distributions of the random variables based on observed data from the Murray–Darling Basin in Australia where a water market has been in place for several decades.
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Gao, Juanjuan, Huaxiang He, Qiang An, Jiqiang Xie, Yingjie Cui, and Xinmin Xie. "An Improved Fuzzy Analytic Hierarchy Process for the Allocation of Water Rights to Industries in Northeast China." Water 12, no. 6 (June 16, 2020): 1719. http://dx.doi.org/10.3390/w12061719.
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To facilitate water management and efficient utilization of water resources, the allocation of water rights to individual industries must be underpinned by a rational and defensible process. This study aimed to develop an improved fuzzy analytic hierarchy process method of allocating water rights to different industries and focused on Qing’an County, northeast China as a case study. An evaluation index system for allocation of initial water rights was established, and incorporated physiographic, societal, economic, and ecological criteria. The system classifies four categories of second-level indices, 14 third-level indices, and 30 fourth-level indices. The order of priority of the evaluation index was determined and the total weight of initial water rights for different industries was calculated using the fuzzy analytic hierarchy process method. Results showed that the indices for the allocation of initial water rights ranked in descending order of their total weights coefficient were: (1) agricultural water rights: 0.9508; (2) residential water rights: 0.0240; (3) water rights for non-agricultural production: 0.0173; (4) environmental water rights: 0.0078. Agricultural water consumption accounted for the largest proportion of total water because the study area is a major grain production area. The study provides a theoretical basis for the allocation of water rights and water rights trading in northeast China.
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Zhang, Qian, Jun Ying Jin, Da Ke Wang, and Lin Qin. "The Study on Initial Allocation of Water Rights in China." Applied Mechanics and Materials 641-642 (September 2014): 123–26. http://dx.doi.org/10.4028/www.scientific.net/amm.641-642.123.
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Generally, water rights are based on the water law that applies in a particular country and, at their most basic, are classified as land-based or use-based rights.This study mainly analyzed current water rights trading in our country through summarizing the connotation of water rights at home and abroad, on the basis of analysis and comparison of the initial water rights allocation related models, at the same time, pointed out the importance by analysis of the initial water rights allocation model research, which is helpful to the initial water rights allocation for water rights market benign development.
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Zaman, A. M., H. M. Malano, and B. Davidson. "An integrated water trading–allocation model, applied to a water market in Australia." Agricultural Water Management 96, no. 1 (January 2009): 149–59. http://dx.doi.org/10.1016/j.agwat.2008.07.008.
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Huang, Jin, Van Butsic, Weijun He, Dagmawi Degefu, Zaiyi Liao, and Min An. "Historical Accountability for Equitable, Efficient, and Sustainable Allocation of the Right to Emit Wastewater in China." Entropy 20, no. 12 (December 10, 2018): 950. http://dx.doi.org/10.3390/e20120950.
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Establishing policies for controlling water pollution through discharge permits creates the basis for emission permit trading. Allocating wastewater discharge permits is a prerequisite to initiating the market. Past research has focused on designing schemes to allocate discharge permits efficiently, but these schemes have ignored differences among regions in terms of emission history. This is unfortunate, as fairness may dictate that areas that have been allowed to pollute in the past will receive fewer permits in the future. Furthermore, the spatial scales of previously proposed schemes are not practical. In this article, we proposed an information entropy improved proportional allocation method, which considers differences in GDP, population, water resources, and emission history at province spatial resolution as a new way to allocate waste water emission permits. The allocation of chemical oxygen demand (COD) among 30 provinces in China is used to illustrate the proposed discharge permit distribution mechanism. In addition, we compared the pollution distribution permits obtained from the proposed allocation scheme with allocation techniques that do not consider historical pollution and with the already established country plan. Our results showed that taking into account emission history as a factor when allocating wastewater discharge permits results in a fair distribution of economic benefits.
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Wollmuth, Jessica Cragan, and J. Wayland Eheart. "SURFACE WATER WITHDRAWAL ALLOCATION AND TRADING SYSTEMS FOR TRADITIONALLY RIPARLAN AREAS1." JAWRA Journal of the American Water Resources Association 36, no. 2 (April 2000): 293–303. http://dx.doi.org/10.1111/j.1752-1688.2000.tb04268.x.
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Niksokhan, Mohammad Hossein, Reza Kerachian, and Mohammad Karamouz. "A game theoretic approach for trading discharge permits in rivers." Water Science and Technology 60, no. 3 (July 1, 2009): 793–804. http://dx.doi.org/10.2166/wst.2009.394.
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In this paper, a new Cooperative Trading Discharge Permit (CTDP) methodology is designed for estimating equitable and efficient treatment cost allocation among dischargers in a river system considering their conflicting interests. The methodology consists of two main steps: (1) initial treatment cost allocation and (2) equitable treatment cost reallocation. In the first step, a Pareto front among objectives is developed using a powerful and recently developed multi-objective genetic algorithm known as Nondominated Sorting Genetic Algorithm-II (NSGA-II). The objectives of the optimization model are considered to be the average treatment level of dischargers and a fuzzy risk of violating the water quality standards. The fuzzy risk is evaluated using the Monte Carlo analysis. The best non-dominated solution on the Pareto front, which provides the initial cost allocation to dischargers, is selected using the Young Bargaining Theory (YBT). In the second step, some cooperative game theoretic approaches are utilized to investigate how the maximum saving cost of participating dischargers in a coalition can be fairly allocated to them. The final treatment cost allocation provides the optimal trading discharge permit policies. The practical utility of the proposed methodology for river water quality management is illustrated through a realistic case study of the Zarjub river in the northern part of Iran.
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Zhang, Wenge, Yifan He, and Huijuan Yin. "Research on Water Rights Allocation of Coordinated Development on Water–Ecology–Energy–Food." Water 14, no. 13 (July 5, 2022): 2140. http://dx.doi.org/10.3390/w14132140.
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Water rights trading is an important way to solve the problem of water shortage by market mechanism. The allocation of water rights among ecological water, energy water, and grain planting water are the basis of the regional water rights trade. In this paper, the concept of coordinated development of water–ecology–energy–food is proposed. We build a water rights allocation model with fairness, efficiency, and coordinated development as the goal, to achieve water security for various industries. Taking Yinchuan city as an example, the results showed that compared with the current water rights the water rights of life increased by 1.07%, the water rights of ecology increased by 1.85%, the water rights of energy industry decreased by 1.09%, the water rights of food planting decreased by 3.27%, the water rights of other agriculture increased by 0.83%, and the water rights of the general industry increased by 0.65%. After the allocation of water rights, the cooperativity of water–ecology–energy–food increased by 7.56%, and the total value of water resources in various industries increased by 2.31 × 108 CNY. A new water rights allocation model is developed in this paper, which can provide a reference for the allocation of water rights among regional industries.
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Shen, Junyuan, Fengping Wu, Qianwen Yu, Zhaofang Zhang, Lina Zhang, Min Zhu, and Zhou Fang. "Standardization of Exchanged Water with Different Properties in China’s Water Rights Trading." International Journal of Environmental Research and Public Health 17, no. 5 (March 6, 2020): 1730. http://dx.doi.org/10.3390/ijerph17051730.
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Water rights trading is an effective way to optimize the allocation of water resources. However, the existing practice of water rights trading in China lacks any consideration of the practical value of the exchanged water. This deficiency may lead to disputes between transferor and transferee during the implementation of the water rights trading contract. This paper puts forward the concept of Standard Water (SW). First, getting the original value of exchanged water by the shadow price model based on input-output table; Second, based on the original value, building the economic profits or costs model to obtain the practical value of exchanged water; Third, establishing SW quantity measurement model according to the principle of rewarding excellence and punishing inferiority, so as to convert the water quantity of exchanged water into SW quantity. With the standardization method, this paper takes the water rights transaction between Dongyang City and Yiwu City in 2000 as an example to carry out case study, and provides policy recommendations. The results show that when the contract requires the provision of 49.999 million m3 water of Class I the quality, if the exchanged water quality provided is in Class II-V, the corresponding SW will be decreased to 48.699–37.399 million m3. The application of this research will be conducive to ensuring the fairness and durability of the water rights trading processes.
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Shortle, James, David Abler, Zach Kaufman, and Katherine Y. Zipp. "Simple vs. Complex: Implications of Lags in Pollution Delivery for Efficient Load Allocation and Design of Water-quality Trading Programs." Agricultural and Resource Economics Review 45, no. 2 (July 4, 2016): 367–93. http://dx.doi.org/10.1017/age.2016.18.
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Water-quality markets that allow point-nonpoint trades assume that nonpoint best management practices (BMPs) achieve the targeted reductions as soon as they are implemented. However, changes in water quality in response to BMPs occur over time—from a few months to decades. We simulate emission allocations using static and dynamic-optimization models to determine whether a simple static allocation can produce results comparable economically and environmentally to complex multi-period designs for nitrogen emissions to Chesapeake Bay. We find that static rules provide relatively large cost savings compared to dynamic rules but result in a delay in achievement of water-quality targets.
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Iftekhar, Md Sayed, and James Fogarty. "Benefits of a groundwater allocation trading arrangement in a water-stressed environment." Agricultural Water Management 269 (July 2022): 107649. http://dx.doi.org/10.1016/j.agwat.2022.107649.
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Telfah, Dua'a B., Riccardo Minciardi, and Giorgio Roth. "Trading the Economic Value of Unsatisfied Municipal Water Demand." Proceedings of the International Association of Hydrological Sciences 379 (June 5, 2018): 343–49. http://dx.doi.org/10.5194/piahs-379-343-2018.
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Abstract. Modelling and optimization techniques for water resources allocation are proposed to identify the economic value of the unsatisfied municipal water demand against demands emerging from other sectors. While this is always an important step in integrated water resource management perspective, it became crucial for water scarce Countries. In fact, since the competition for the resource is high, they are in crucial need to trade values which will help them in satisfying their policies and needs. In this framework, hydro-economic, social equity and environmental constraints need to be satisfied. In the present study, a hydro-economic decision model based on optimization schemes has been developed for water resources allocation, that enable the evaluation of the economic cost of a deficiency in fulfilling the municipal demand. Moreover, the model enables efficient water resources management, satisfying the demand and proposing additional water resources options. The formulated model is designed to maximize the demand satisfaction and minimize water production cost subject to system priorities, preferences and constraints. The demand priorities are defined based on the effect of demand dissatisfaction, while hydrogeological and physical characteristics of the resources are embedded as constraints in the optimization problem. The application to the City of Amman is presented. Amman is the Capital City of the Hashemite Kingdom of Jordan, a Country located in the south-eastern area of the Mediterranean, on the East Bank of the Jordan River. The main challenge for Jordan, that threat the development and prosperity of all sectors, is the extreme water scarcity. In fact, Jordan is classified as semi-arid to arid region with limited financial resources and unprecedented population growth. While the easy solution directly goes to the simple but expensive approach to cover the demand, case study results show that the proposed model plays a major role in providing directions to decision makers to orient their policies and strategies in order to achieve sustainability of scarce water resources, satisfaction of the minimum required demand as well as financial sustainability. In addition, results map out national needs and priorities that are crucial in understanding and controlling the complexity of Jordan's water sector, mainly for the city of Amman.
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Kemper, Karin E. "The role of institutional arrangements for more efficient water resources use and allocation." Water Science and Technology 43, no. 4 (February 1, 2001): 111–17. http://dx.doi.org/10.2166/wst.2001.0194.
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Water resources management requires an interdisciplinary approach to meet the challenges posed by ever increasing water demand and pollution. This paper discusses in which way appropriate institutional arrangements are complementary to technical interventions that aim to increase more efficient water use and allocation. Specific emphasis is given to water property rights as one of the determining factors in regard to the institutional framework. Issues such as the range of flexibility in designing property rights to water, the implications for pricing, enforcement and sanctioning mechanisms as well as for water trading and information needs are highlighted.
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Ancev, Tiho. "Water Markets, Environmental Flows, and Adaptation to Climate Change." Water Economics and Policy 01, no. 03 (September 2015): 1550016. http://dx.doi.org/10.1142/s2382624x15500162.
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The possibility of climate change and the effects it will have on global and regional hydrology opens up serious questions about how the affected sectors of the economy and the water-dependent environmental assets can best adapt to the new, harsher climatic conditions. One of the possible approaches toward securing environmental water flows is to hold water rights on behalf of the public, and manage those rights for environmental purposes. This type of policy has been in effect in the Murray-Darling Basin, Australia, where the Commonwealth Environmental Water Holder (CEWH) now has some 20% of all water rights in the basin. Thus far, the use of these water rights has been almost exclusively for environmental purposes, besides the calls for some of the allocations on these water rights to be sold to irrigators. This paper examines whether a change in policy that will allow a more flexible trading behavior of the CEWH so that it can be an active participant in the market for water allocations can help with adaptation to climate change from environmental management perspective, as well as from the perspective of irrigated agriculture industry. This objective is pursued by analyzing the effects of likely hydrological variations under climate change. Key parameters that are taken into account are expected water availability, and the variability in water availability. The discourse is framed within the concept of optimal allocation of water resources so as to maximize overall social benefit from water use. The results indicate that active participation of the CEWH in the water market leads to superior outcomes in terms of both greater overall social benefit, and greater quantity of water being available for environmental purposes under climate change. The key policy implication is that trading rules for CEWH should be relaxed, especially under the projected climate change scenarios.
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Chengot, Rishma, Jerry W. Knox, and Ian P. Holman. "Evaluating the Feasibility of Water Sharing as a Drought Risk Management Tool for Irrigated Agriculture." Sustainability 13, no. 3 (January 30, 2021): 1456. http://dx.doi.org/10.3390/su13031456.
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Droughts can exert significant pressure on regional water resources resulting in abstraction constraints for irrigated agriculture with consequences for productivity and revenue. While water trading can support more efficient water allocation, high transactional costs and delays in approvals often restrict its wider uptake among users. Collaborative water sharing is an alternative approach to formal water trading that has received much less regulatory and industry attention. This study assessed how the potential benefits of water sharing to reduce water resources risks in agriculture are affected by both drought severity and the spatial scale of water-sharing agreements. The research focused on an intensively farmed lowland catchment in Eastern England, a known hot-spot for irrigation intensity and recurrent abstraction pressures. The benefits of water sharing were modelled at four spatial scales: (i) individual licence (with no water sharing), (ii) tributary water sharing among small farmer groups (iii) sub-catchment and (iv) catchment scale. The benefits of water sharing were evaluated based on the modelled reductions in the probability of an irrigation deficit occurring (reducing drought risks) and reduced licensed ‘headroom’ (spare capacity redeployed for more equitable allocation). The potential benefits of water sharing were found to increase with scale, but its impact was limited at high levels of drought severity due to regulatory drought management controls. The broader implications for water sharing to mitigate drought impacts, the barriers to wider uptake and the environmental consequences are discussed.
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Giannoccaro, Giacomo, Manuela Castillo, and Julio Berbel. "Factors influencing farmers’ willingness to participate in water allocation trading. A case study in southern Spain." Spanish Journal of Agricultural Research 14, no. 1 (March 2, 2016): e0101. http://dx.doi.org/10.5424/sjar/2016141-7827.
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<p>This study aims to uncover the factors that influence farmers’ attitudes towards water allocation trading. In the study, we simulate two water availability scenarios, an average year and a drought year, in a contingent valuation experiment with 241 farmers. A survey was held in the spring of 2012 in the Guadalquivir and Almanzora River Basins. First, we estimated a multinomial logit model to determine the factors that influence farmers to decide to participate in our hypothetical market. We then analysed the structural and socio-economic factors determining the monetary value of traded water using Heckman’s two-step model. Our results indicate that those farmers who are more innovative and have had agricultural training show a higher willingness to participate in water trading. Additionally, low water-supply guarantee and appropriate information about seasonal water availability increase the probability of participation. Higher willingness to pay (WTP) for water is found in horticulture and among farmers who grow citrus and other permanent crops; lower water selling value (WTA) is found in farms with extensive annual crops and traditional olive groves. However, monetary values (WTP/WTA) are strongly dependent on the current cost of irrigation water services. While findings of this research seem to support the idea of diffusion innovation theory, the existence of ethical concerns that might influence farmers’ acceptance of irrigation water markets needs further analysis.</p>
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Yu, Qianwen, Zehao Sun, Junyuan Shen, Xia Xu, and Xiangnan Chen. "Interactive Allocation of Water Pollutant Initial Emission Rights in a Basin under Total Amount Control: A Leader-Follower Hierarchical Decision Model." International Journal of Environmental Research and Public Health 20, no. 2 (January 13, 2023): 1511. http://dx.doi.org/10.3390/ijerph20021511.
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The initial emission rights allocation is the key measure to achieve the goal of total amount control and deepen the emission trading system. Although many studies have focused on the modeling of initial emission rights allocation, such as using game theory and multi-objective optimization methods, few studies have observed the hierarchical relationship of mutual interference and restriction between watershed management agency and local governments in each subarea during allocation. This relationship directly affects the rationality of the results of regional emission rights allocation. In this study, a leader-follower hierarchical decision model (LFHDM) for allocating initial emission rights in a basin is developed. Based on the bilevel programming approach, the model simulates the interactive decision-making process between the watershed management agency of the upper-level model (LFHDM-U) and the local government of the lower-level model (LFHDM-L) in the allocation under total amount control. A case study of China’s Yellow River Basin is conducted to demonstrate the feasibility and practicality of the model. Findings reveal that, compared with the single-level model, the developed LFHDM has higher satisfaction with the allocation scheme. Under different scenarios, the overall satisfaction of the configuration schemes of COD and NH3-N in each province and autonomous region remains above 0.9. In addition, the allocation volumes of COD and NH3-N in each province of the Yellow River Basin in planning year increase with the enhancement of allowable assimilative capacity of water bodies, but the interval gap of satisfaction with allocation schemes gradually narrows. It shows that when the allowable assimilation capacity of a water body is low, the decision-making of the allocation scheme needs to be more cautious. Moreover, for the Yellow River Basin, apart from Qinghai and Sichuan, the task of reducing water pollutants in other provinces in the next few years is very arduous. The average reduction of total COD and NH3-N in the basin is about 48% and 46%, respectively.
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Jamshidi, Shervin, Mohammad Hossein Niksokhan, and Mojtaba Ardestani. "Surface water quality management using an integrated discharge permit and the reclaimed water market." Water Science and Technology 70, no. 5 (July 10, 2014): 917–24. http://dx.doi.org/10.2166/wst.2014.314.
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Water quality trading is a sustainable framework for surface water quality management. It uses discharge permits to reduce the total treatment costs. For example, the case of Gharesoo River in Iran shows that the nitrogen permit market between point and non-point sources is 37% more economical than the command and control framework. Nevertheless, the cost saving may be reduced to 6% by the end of the study period (2050). This depression may be due to the limited technical support for wastewater treatment plants. Therefore, an integrated market is recommended in which the discharge permits and the reclaimed water are traded simultaneously. In this framework, the allocation of secondary treated domestic wastewater for irrigation can provide capacity for other pollutants to discharge into the surface water. This innovative approach may decrease the total treatment costs by 63% at present, while 65%, may be achieved by the end of the study period. Furthermore, this market is able to determine the environmental penalty, trading permits, and reuse prices. For example, the maximum ratio of the average reuse price to the penalty cost is determined as 1 to 10. It is introduced as an incentive indicator for stakeholders to consider the integrated market. Consequently, the applicability and the efficiency of using this approach are verified long term.
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Zeng, Xueting, Yongping Li, Guohe Huang, Xiaowen Zhuang, and Shuang Nie. "Sustainable Water-Resources Allocation Through a Trading-Oriented Mechanism Under Uncertainty in an Arid Region." CLEAN - Soil, Air, Water 46, no. 10 (August 22, 2018): 1800317. http://dx.doi.org/10.1002/clen.201800317.
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Durán-Sánchez, Amador, María de la Cruz del Río-Rama, José Álvarez-García, and Mª Teresa Cabezas-Hernández. "Water Markets: Mapping Scientific Knowledge." Water 14, no. 12 (June 13, 2022): 1907. http://dx.doi.org/10.3390/w14121907.
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Water is a vital resource for citizens’ economic and social development. However, the uses to which it can be put often conflict. Possible solutions to mitigate disputes involve political options, scarce economic resources, and the search for mechanisms to ensure its adequate allocation. For over half a century, countries such as Australia, Spain, Chile, and the western states of the United States have been considering the possibility of using markets for rights of use. They are defined as formal or informal trading exchanges of rights, whose aim is to improve efficiency, ensure security of supply, and make allocations more flexible. In this context, the aim of this article is to show a current picture of the scientific production related to Water Markets using the comparative bibliometric study of the documents indexed in the Web of Science (WoS) and Scopus databases as a tool. The advanced search of relevant terms resulted in the retrieval of 261 papers from WoS and 305 from Scopus, with a time limit of 2020, which make up the ad hoc basis of the analysis. From this basis, it can be deduced that the subject of the Water Market has been present in the scientific literature on a more or less regular basis since the beginning of the 1990s. However, it has emerged as a topical issue in recent years, being in a phase of exponential growth, which means that interest in the area is likely to continue in the coming years.
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Watson, Reed. "Water Allocation in Rivers under Pressure: Water Trading, Transaction Costs and Transboundary Governance in the Western US and Australia." Water Economics and Policy 02, no. 01 (March 2016): 1680001. http://dx.doi.org/10.1142/s2382624x16800011.
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Ann Wheeler, Sarah, and Dustin E. Garrick. "A tale of two water markets in Australia: lessons for understanding participation in formal water markets." Oxford Review of Economic Policy 36, no. 1 (2020): 132–53. http://dx.doi.org/10.1093/oxrep/grz032.
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Abstract Water markets are promoted as a demand-management strategy for addressing water scarcity. Although there is an increasing literature on the institutional preconditions required for successful formal water markets, there has been less focus on understanding what drives participation after establishment of the basic enabling conditions. Participation can be measured in terms of either trading activity (conducting either a permanent or temporary water trade) and/or trade volumes across time and market products. Australia’s water markets in the Southern and Northern Basins of the Murray-Darling Basin provide a notable example of a ‘tale of two water markets’, offering insights about the economic policy levers that can drive participation across different hydrological, irrigation, and socioeconomic contexts. Key lessons include: distribution of initial property rights in resource allocation; the need to prepare for and seize opportunities to strengthen property rights; and robust monitoring and compliance requirements—all of which will reduce transaction costs and increase participation.
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Qin, Changhai, Shan Jiang, Yong Zhao, Yongnan Zhu, Qingming Wang, Lizhen Wang, Junlin Qu, and Ming Wang. "Research on Water Rights Trading and Pricing Model between Agriculture and Energy Development in Ningxia, China." Sustainability 14, no. 23 (November 26, 2022): 15748. http://dx.doi.org/10.3390/su142315748.
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The contradiction between the supply and demand of water resources has become increasingly prominent, and water rights trading is an effective approach to increase the efficiency of water resource utilization and allocation so as to achieve sustainable use of water resources. Current transferring cost and price in China are both underestimated, taking into account the construction and maintenance fee of water conservation project and the irrigation risk compensation fee but ignoring the renovation and reconstruction fee of water conservation projects, and the compensation fee for farmers. This paper takes assignee rights, assignee capacity, and compensation to third parties into comprehensive considerations in Ningxia Hui Autonomous Region, where the contradictions between water, energy and food are most prominent in China. Tradable water use rights were analyzed based on a water transfer pricing model. The results show that there is an obvious negative correlation between shadow water price and water usage, and the shadow price of water resources is between 10.91 and 40.52 CNY/m3, which is an optimal solution under the constraint of water usage from 6.65 to 7.03 billion m3. The reasonable water transfer price is 10.91 CYN/m3, of which the earning of the agricultural assignor was 5.96 CNY/m3. This price guarantees the interests of the assignee and is also affordable to the assignee. This research provides a specific calculation method for the transfer pricing of water rights under non-market conditions, which is of important theoretically and has practical significance.
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Xu, Yang, Ming Wang, Kin Keung Lai, and Bhagwat Ram. "A Stochastic Model for Shipping Container Terminal Storage Management." Journal of Marine Science and Engineering 10, no. 10 (October 4, 2022): 1429. http://dx.doi.org/10.3390/jmse10101429.
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A good port terminal is not only a major economic multiplier for the nation’s prosperity by being a gateway for trading, but is also an attractor for other commercial infrastructure development such as banks, logistics agencies, and manufacturing and trading investments. A measurement of the efficiency of a terminal is the duration-of-stay of visiting vessels. A quick and efficient loading/unloading process can increase productivity and thus reduce the waiting time for a vessel. In this study, we address the space allocation for stacking export containers. If the storage layout and the loading plan work well together, the productivity of the terminal can be increased and the duration-of-stay needed for each visiting vessel is reduced. In this paper, we propose a hybrid storage policy combining class-dedicated and sharing strategies, and construct a stochastic programming model using the concept of recourse.
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Nickum, James E. "Dustin Evan Garrick, Water allocation in rivers under pressure: water trading, transaction costs and transboundary governance in the western US and Australia." Water International 42, no. 3 (March 30, 2017): 342–45. http://dx.doi.org/10.1080/02508060.2017.1309813.
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Pang, Aiping, Fen Zhao, Chunhui Li, and Yujun Yi. "Rethinking Environmental Flows for the Yellow River Estuary by Trading Off Crop Yield and Ecological Benefits." Agriculture 11, no. 2 (February 1, 2021): 116. http://dx.doi.org/10.3390/agriculture11020116.
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To solve the water use conflicts between agriculture and ecosystems in arid and semiarid areas, a multi-objective trade-off analysis method was applied to determine the environmental flows (e-flows) for the Yellow River Estuary, by considering the temporal and spatial discrepancies in water allocation. The results showed that during average years, a loss of 3.7 × 108 yuan was caused with every 1 × 108 m3 of e-flows under the baseline scenario. The crop growth stages of April–July are sensitive periods for water requirements, and over 5000 yuan/ha production losses were caused by prioritizing e-flows during this time in dry years. The stages from July–October require more water by ecosystems than other stages, and the recommended e-flows during this time accounted for 57% of the e-flows during the total year. Under scenarios 1–3, which represent the short-term, medium-term and long-term scenarios, more water resources were supplied by underground water and water diversion projects; however, alleviating the water use contradiction remained difficult in dry years. During average years, e-flows between 148 and 168 × 108 m3 are recommended to meet the ecological objectives of survival, reproduction and biological integrity of species for the Yellow River Estuary. The recommended e-flows in wet years could meet higher ecological objectives but still barely achieve the targets of sediment transport and ecosystem dynamic balance. In dry years, the economic losses may be beyond the acceptance of irrigation stakeholders if more water is allocated to improve e-flows. In this case, 71 × 108 yuan would be paid to them to compensate for their losses. This study proposes an e-flow recommendation framework that is economically and ecologically optimal in areas with irreconcilable water-use contradictions.
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KANG, Chuanjin, Jingjing YAN, and Yoshiro HIGANO. "Introduction of an Emission Trading System in China —— From the Viewpoint of Initial Allocation of a Water Pollution Permit ——." Studies in Regional Science 40, no. 3 (2010): 721–33. http://dx.doi.org/10.2457/srs.40.721.
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Qureshi, M. E., M. D. Ahmad, S. M. Whitten, A. Reeson, and M. Kirby. "Impact of Climate Variability Including Drought on the Residual Value of Irrigation Water Across the Murray–Darling Basin, Australia." Water Economics and Policy 04, no. 01 (January 2018): 1550020. http://dx.doi.org/10.1142/s2382624x15500204.
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Understanding the economic value of irrigation water is essential for supporting policies relating to the irrigation sector, irrigation water allocation decisions, water pricing and to compare the variable impacts of water reform within and across sectors of the economy. In this paper, we apply the residual method as a complement to other methods for determining the value of the water used over a wide range of irrigated crops in different seasons and regions of Australia’s Murray–Darling Basin. Using Monte Carlo simulation and probability theory, we estimated the combined impacts of biophysical and economic factors on the economic productivity of irrigation water use by individual activities. The estimated residual values vary across regions and in response to water availability as we would expect and warrant consideration of these factors in making any future water policy and investment decisions in different regions. As anticipated perennial (fruits and nuts, grapes) and high capital annual activities (cotton) represent the highest value water uses. Water trading from low to high value activities results in economic losses that are much lower than the proportional decline in water availability during periods of drought.
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Hassan, Rashid, and Djiby Racine Thiam. "Implications of water policy reforms for virtual water trade between South Africa and its trade partners: economy-wide approach." Water Policy 17, no. 4 (November 27, 2014): 649–63. http://dx.doi.org/10.2166/wp.2014.242.
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This paper employs an economy-wide framework to evaluate impacts of water and trade policy reforms in South Africa (SA) on virtual water flows. To pursue this analysis, the study derives net virtual water trade flows between SA and its partners to assess implications of recent trade agreements within the South African Development Community compared to economic cooperation with other major trading blocks (e.g. European Union, Asia, and Brazil, Russia, India and China (BRIC)). Recent trends in actual trade confirm model predictions that liberalization of water allocation would switch water from field crops to horticulture and promote growth in non-agricultural exports. The results suggest that it is necessary to introduce policies that enhance likely outcomes of liberalization promoting higher water use efficiency within irrigation agriculture such as increased adoption of more efficient irrigation methods (sprinkler, drip, etc.) as water becomes more expensive under wider open competition. Moreover, investment in higher water use efficiency and improved competitiveness of dryland agriculture therefore represent the sound economic options for strengthening the capacity to achieve food security objectives as the country strives to lower net water exports. Finally, careful coordination of trade and water policy reforms is another necessary challenge for SA's strive to manage a water stressed economy.
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Dou, Ming, and Yanyan Wang. "The construction of a water rights system in China that is suited to the strictest water resources management system." Water Supply 17, no. 1 (August 9, 2016): 238–45. http://dx.doi.org/10.2166/ws.2016.130.
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Establishing a modern water rights system (WRS) that is suited to the Strictest Water Resources Management System (SWRM) is an important reform in China's water resources management in terms of addressing current water issues. However, there are still several problems in the construction of a WRS, such as ambiguity in the definition of water rights, weakness in the infrastructure of water rights and imperfect WRS legislation. Moreover, water rights allocation (WRA) and water rights trading (WRT), which are two core components of water rights, still have some problems that remain to be solved. The ‘Three Red Lines’, which make up the core of the SWRM, are expounded upon, and the relationship between the WRS and the SWRM is analyzed. Finally, some appropriate recommendations based on the ‘Three Red Lines’ are provided to perfect the WRS so that it is suitable for the SWRM. In this paper, we conclude that the WRS is a type of water resource management that can effectively solve the current water issues in China. Significant efforts have been made in the construction of the WRS, which has achieved remarkable success in a period of exploration and practice in China. The construction of the WRS supports sustainable social and economic development and results in harmonious relationships between humans and nature.
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Dabrowski, J. M., E. Masekoameng, and P. J. Ashton. "Analysis of virtual water flows associated with the trade of maize in the SADC region: importance of scale." Hydrology and Earth System Sciences Discussions 5, no. 5 (September 12, 2008): 2727–57. http://dx.doi.org/10.5194/hessd-5-2727-2008.
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Abstract. The concept of virtual water encourages a country to view agricultural crops in terms of the amount of water required to produce those crops, with a view to implementing trading policies that promote the saving of scarce water resources. Recently, increased attention has focussed on partitioning the virtual water content of crops into green and blue water (derived from rainfall and irrigation, respectively) as the latter has higher opportunity costs associated with its use and therefore impacts directly on scarcity. Maize is the most important crop traded within the SADC region. South Africa is the largest producer and exporter of maize, with the majority of its exports destined for other SADC countries. In comparison to other SADC countries, South Africa produces maize relatively efficiently, with a low virtual water content and a high green (868 m3 tonne−1) to blue (117 m3 tonne−1) water ratio. The blue water content is however higher than for maize produced in all other SADC countries, with the exception of Namibia (211 m3 tonne−1). Current trade patterns therefore result in a net expenditure of blue water (66×106 m3), almost all of which is exported by South Africa (65×106 m3). South Africa is one of the most water scarce countries in the region and analysis of virtual water flows indicates that current SADC maize trading patterns are influenced by national productivity as opposed to water scarcity. The virtual water content of maize was estimated for each of South Africa's nineteen Water Management Area's (WMA) and used as a proxy to represent water use efficiency for maize production. The virtual water content varied widely across all of the WMAs, ranging from 360 m3 tonne-1 in the Ustutu Mhlatuze to 1000 m3 tonne−1 in the Limpopo. A comparison of the virtual water content and production of maize (expressed as a percentage of the total national production) identified those WMAs where maize production is highly water inefficient (e.g. Lower Orange and Limpopo WMAs). Results suggest that, while a national estimate of the virtual water content of a crop may indicate a relatively efficient use of water, an analysis of the virtual water content at smaller scales can reveal inefficient use of water for the same crop. Therefore, analysis of the virtual water content of crops and trading of agricultural products at different spatial scales (i.e. regional, national and WMA) could be an important consideration within the context of water allocation, water use efficiency and alleviation of water scarcity.
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Dabrowski, J. M., E. Masekoameng, and P. J. Ashton. "Analysis of virtual water flows associated with the trade of maize in the SADC region: importance of scale." Hydrology and Earth System Sciences 13, no. 10 (October 23, 2009): 1967–77. http://dx.doi.org/10.5194/hess-13-1967-2009.
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Abstract. The concept of virtual water encourages a country to view agricultural crops in terms of the amount of water required to produce those crops, with a view to implementing trading policies that promote the saving of scarce water resources. Recently, increased attention has focussed on partitioning the virtual water content of crops into green and blue water (derived from rainfall and irrigation, respectively) as the latter has higher opportunity costs associated with its use and therefore impacts directly on scarcity. Maize is the most important crop traded within the SADC region. South Africa is the largest producer and exporter of maize, with the majority of its exports destined for other SADC countries. In comparison to other SADC countries, South Africa produces maize relatively efficiently, with a low virtual water content and a high green (868 m3 t−1) to blue (117 m3 t−1) water ratio. The blue water content is however higher than for maize produced in all other SADC countries, with the exception of Namibia (211 m3 t−1). Current trade patterns therefore result in a net expenditure of blue water (66×106 m3), almost all of which is exported by South Africa (65×106 m3). South Africa is one of the most water scarce countries in the region and analysis of virtual water flows indicates that current SADC maize trading patterns are influenced by national productivity as opposed to water scarcity. The virtual water content of maize was estimated for each of South Africa's nineteen Water Management Area's (WMA) and used as a proxy to represent water use efficiency for maize production. The virtual water content varied widely across all of the WMAs, ranging from 360 m3 t−1 in the Ustutu Mhlatuze to 1000 m3 t−1 in the Limpopo. A comparison of the virtual water content and production of maize (expressed as a percentage of the total national production) identified those WMAs where maize production is highly water inefficient (e.g. Lower Orange and Limpopo WMAs). Results suggest that, while a national estimate of the virtual water content of a crop may indicate a relatively efficient use of water, an analysis of the virtual water content at smaller scales can reveal inefficient use of water for the same crop. Therefore, analysis of the virtual water content of crops and trading of agricultural products at different spatial scales (i.e. regional, national and WMA) could be an important consideration within the context of water allocation, water use efficiency and alleviation of water scarcity.
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Goodspeed, Robert, Christina Babbitt, Ana Lucia Garcia Briones, Emily Pfleiderer, Camilla Lizundia, and Colleen M. Seifert. "Learning to Manage Common Resources: Stakeholders Playing a Serious Game See Increased Interdependence in Groundwater Basin Management." Water 12, no. 7 (July 11, 2020): 1966. http://dx.doi.org/10.3390/w12071966.
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This paper reports an empirical evaluation of a new serious game created to foster learning about collaborative management of common pool resources. Stakeholders (n = 41) involved in the implementation of California’s Sustainable Groundwater Management Act were recruited to play a new serious game designed to illustrate how alternative water management strategies, including pumping restrictions and simple trading schemes, affect supply. In the game, a group of six players set in a groundwater basin area enact the allocation, needs, and use of water in rounds representing annual seasons. Pre-post surveys found that the gameplay increased perceived interdependence among stakeholders, and optimism about the groundwater management process. Qualitative feedback suggested that participants gained new insights into the nature of common pool resources and the needs of other stakeholders. Serious games may be useful in fostering attitudes, such as interdependence needed for successful collaborative planning and governance.
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Bettili, Luisa, Eva Pek, and Maher Salman. "A Decision Support System for Water Resources Management: The Case Study of Mubuku Irrigation Scheme, Uganda." Sustainability 11, no. 22 (November 7, 2019): 6260. http://dx.doi.org/10.3390/su11226260.
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The greater competing demand for water requires an efficient use of water resources. Therefore, an optimum management is necessary in order to deal with the constraining factors. In African countries, irrigated agriculture is the largest user of surface water resources. Nevertheless, recent assessments in small-scale surface irrigation schemes resulted in poor performance indicators: Water use efficiency indicators of existing schemes are below 50 percent, owing to inadequate management modes. The paper sheds the light on the potential development of a decision-support system based knowledge with the Mapping System and Services for Canal Operation Techniques approach, merged with the MIKEHydro Basin model as a versatile and flexible framework conceived for a large variety of applications in small-scale irrigation. The model aims to improve water service, increase irrigation efficiency, comply with socio-economic objectives at country level. In order to address the prevailing heterogeneity of small-scale irrigation scheme, numerous variables are adjusted in the model, in terms of cropping patterns, climate data, and irrigation time. The evaluation of established water balance under different scenarios showed that tackling supply-driven scheduling and distributive issues significantly increases efficiency. Nevertheless, water allocation according to socio-economic objectives of food security and market security implies trading off the efficiency objectives.
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Sennett, Amy, Emma Chastain, Sarah Farrell, Tom Gole, Jasdeep Randhawa, and Chengyan Zhang. "Challenges and responses in the Murray–Darling Basin." Water Policy 16, S1 (March 1, 2014): 117–52. http://dx.doi.org/10.2166/wp.2014.006.
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This paper traces the evolving institutional and policy responses to the social, environmental and economic needs of stakeholders in the Murray–Darling Basin. The paper begins by describing four cycles of challenge and response in the basin: the first period (1830–1900) witnessed the state-level development of irrigation and navigation in the basin; the second period (1900–1982) encompassed the construction of the basin's major engineering projects and irrigation infrastructure; the third period (1982–2007) covered the institution of market reforms under a ‘whole Basin’ management approach, in particular, the development of inter-state water trading and the National Water Initiative; and the fourth phase (2007–present), marks the assertion of federal authority over water management with the passing of the Water Act in 2007. The second section of the paper provides background on the basin's natural environment and its infrastructure. This section also describes the increasing centralization of basin management authority by the federal government. The paper's final section presents three key questions for the basin's future: (1) the politically acceptable balance between environmental and economic uses for water in the basin; (2) the appropriate allocation of responsibility between federal and state basin management authorities; and (3) the best way to deliver the desired environmental outcomes.
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Marshall, Graham Roy. "Water Allocation in Rivers under Pressure: Water Trading, Transaction Costs and Transboundary Governance in the Western US and Australia by Dustin Evan Garrick Cheltenham, UK: Edward Elgar, 2015." International Journal of the Commons 10, no. 2 (August 26, 2016): 1202. http://dx.doi.org/10.18352/ijc.734.
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Bichler, Martin, Vladimir Fux, and Jacob K. Goeree. "Designing combinatorial exchanges for the reallocation of resource rights." Proceedings of the National Academy of Sciences 116, no. 3 (December 31, 2018): 786–91. http://dx.doi.org/10.1073/pnas.1802123116.
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We describe the design and implementation of a combinatorial exchange for trading catch shares in New South Wales, Australia. The exchange ended a decades-long political debate by providing a market-based response to a major policy problem faced by fisheries worldwide: the reallocation of catch shares in cap-and-trade programs designed to prevent overfishing. The exchange was conducted over the Internet to lower participation costs and allowed for all-or-nothing orders to avoid fragmented share portfolios. A subsidy was distributed endogenously to facilitate the transfer of shares from inactive to active fishers. Finally, prices were linear and anonymous to ensure that sellers of identical packages received the same payments. These features were crucial to mitigate economic distortions from introducing catch shares and to gain broad acceptance of the program. However, they led to computationally challenging allocation and pricing problems. The exchange operated from May to July 2017 and effectively reallocated shares from inactive fishers to those who needed them most: 86% of active fishers’ bids were matched and their share deficits were reduced by 95% in high-priority share classes. Similar reallocation problems arise in fisheries with catch-share systems worldwide as well as in other cap-and-trade systems for resource rights, e.g., water and pollution rights. The implemented exchange illustrates how computational optimization and market design can provide policy tools, able to solve complex policy problems considered intractable only a few years ago.
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Khan, Shahbaz, Dharma Dassanayake, Shahbaz Mushtaq, and Munir A. Hanjra. "Predicting water allocations and trading prices to assist water markets." Irrigation and Drainage 59, no. 4 (November 13, 2009): 388–403. http://dx.doi.org/10.1002/ird.535.
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Isaaks, Rowan, and Bonnie Colby. "Empirical Application of Rubinstein Bargaining Model in Western U.S. Water Transactions." Water Economics and Policy 06, no. 01 (September 20, 2019): 1950010. http://dx.doi.org/10.1142/s2382624x19500103.
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Water transactions are proposed as a policy tool for increasing regional drought resilience and improving allocative efficiency. However, water trading deviates considerably from classical competitive markets and alternative theoretical approaches are useful for understanding water market structure and performance. In this paper, we model a bilateral water transaction using a non-cooperative bargaining model. Then we empirically test predictions regarding time preference, outside options, and water supply risk. The econometric analysis encompasses two transaction regions: Colorado’s Front Range and New Mexico’s Middle Rio Grande Basin. We find evidence suggesting that larger cities pay lower prices in water transactions, faster growing and higher income cities pay higher prices and that prices are higher when snowpack variability is higher. Findings suggest that a stronger time preference results in a less favorable price for urban buyers and that buyer risk-aversion is a greater disadvantage in bargaining in locations with greater water supply variability.
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Schwabe, Kurt, Mehdi Nemati, Clay Landry, and Grant Zimmerman. "Water Markets in the Western United States: Trends and Opportunities." Water 12, no. 1 (January 14, 2020): 233. http://dx.doi.org/10.3390/w12010233.
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Efforts to address water scarcity have traditionally relied on changing the spatial and temporal availability of water through water importation, storage, and conveyance. More recently, water managers have invested heavily in improving water use efficiency and conservation. Yet as new supply options become harder to find and/or appropriate, and demand hardens, society must consider other options to, if not reduce scarcity, minimize the impacts of such scarcity. This paper explores the role water markets are playing in addressing water scarcity in the American southwest: a water-limited arid and semi-arid region characterized by significant population growth rates relative to the rest of the US. Focusing on three representative southwestern states—Arizona, California, and Texas—we begin by highlighting how trends in water supply allocations from different water sources (e.g., surface water, groundwater, and wastewater) and water demand by different water users (e.g., agricultural, municipal, and environmental) have changed over time within each state. We then present recent data that shows how water trading has changed over time—in terms of value and volume—both at state level and sector level aggregates. We end with a discussion regarding some institutional adjustments that are necessary for water markets to achieve their potential in helping society address water scarcity.