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Development of Water Markets in the Yellow River Basin: A Case-Study of the Ningxia Hui Autonomous Region

Svensson, Jesper (2014) ACET35
Centre for East and South-East Asian Studies, Lund University
Abstract
The Yellow River Basin Commission (YRCC) is struggling with demand and supply water imbalances due to inter-jurisdictional rivalries, and has consequently promoted the development of water rights trading to incentivize provinces from not exceeding their allocated withdrawals in the Yellow River Basin (YRB). This thesis employs the case of Ningxia Hui Autonomous Region to examine factors that facilitate or hinder market-based water rights allocation in the YRB. By reviewing scholarly literature, governmental reports and conducting interviews with governmental officials and water rights experts, it argues that two features of China’s water resource management shape water markets in Ningxia: asymmetric information and lack of coordination... (More)
The Yellow River Basin Commission (YRCC) is struggling with demand and supply water imbalances due to inter-jurisdictional rivalries, and has consequently promoted the development of water rights trading to incentivize provinces from not exceeding their allocated withdrawals in the Yellow River Basin (YRB). This thesis employs the case of Ningxia Hui Autonomous Region to examine factors that facilitate or hinder market-based water rights allocation in the YRB. By reviewing scholarly literature, governmental reports and conducting interviews with governmental officials and water rights experts, it argues that two features of China’s water resource management shape water markets in Ningxia: asymmetric information and lack of coordination mechanisms. The flaws in the performance of Ningxia’s water rights transfer system – including inconsistency and lack of integration between the Yellow River Water Allocation Plan and abstraction permits; little consideration to groundwater and surface water linkages – stems from asymmetric information on hydrology and abstraction licenses and absence of formal mechanisms for cross-sectoral coordination. As economic development proceeds in the western interior regions along the Yellow River Basin, the pressure to reallocate water between agriculture to industry through inter sectoral water trading will increase. Consequently, trade-offs between energy vs food production, higher-value use vs equity & environmental flows as a result of tradable water rights is to some degree inevitable; however, collective action challenges of exclusion and coordination tied to mitigating these tensions will put the existing institutional framework governing water rights under growing pressure. (Less)
Please use this url to cite or link to this publication:
author
Svensson, Jesper
supervisor
organization
course
ACET35
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Water markets, institutions, central-local relations, water management, Yellow River Basin, water-energy nexus
language
English
id
4579890
date added to LUP
2014-07-18 13:39:11
date last changed
2014-07-18 13:39:11
@misc{4579890,
  abstract     = {{The Yellow River Basin Commission (YRCC) is struggling with demand and supply water imbalances due to inter-jurisdictional rivalries, and has consequently promoted the development of water rights trading to incentivize provinces from not exceeding their allocated withdrawals in the Yellow River Basin (YRB). This thesis employs the case of Ningxia Hui Autonomous Region to examine factors that facilitate or hinder market-based water rights allocation in the YRB. By reviewing scholarly literature, governmental reports and conducting interviews with governmental officials and water rights experts, it argues that two features of China’s water resource management shape water markets in Ningxia: asymmetric information and lack of coordination mechanisms. The flaws in the performance of Ningxia’s water rights transfer system – including inconsistency and lack of integration between the Yellow River Water Allocation Plan and abstraction permits; little consideration to groundwater and surface water linkages – stems from asymmetric information on hydrology and abstraction licenses and absence of formal mechanisms for cross-sectoral coordination. As economic development proceeds in the western interior regions along the Yellow River Basin, the pressure to reallocate water between agriculture to industry through inter sectoral water trading will increase. Consequently, trade-offs between energy vs food production, higher-value use vs equity & environmental flows as a result of tradable water rights is to some degree inevitable; however, collective action challenges of exclusion and coordination tied to mitigating these tensions will put the existing institutional framework governing water rights under growing pressure.}},
  author       = {{Svensson, Jesper}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Development of Water Markets in the Yellow River Basin: A Case-Study of the Ningxia Hui Autonomous Region}},
  year         = {{2014}},
}