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Mutual monitoring in a tradable water rights system: A case study of Zhangye City in Northwest China

  • Zhang, Jun-Lian
  • Zhang, Feng-Rong
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    Tradable water right systems are becoming important ways to achieve distributive efficiency in water resources. In 2002, China's Ministry of Water Resources initiated a pilot project in Zhangye City in Northwest China. The project was designed to establish a new water use rights system with tradable water quotas with the hope of reallocating water resources more efficiently through market-based instruments. However, the tradable water right system is not well enforced. Based on both primary and secondary data, we find that mutual monitoring can improve the effectiveness of a water allocation and trading program. For both surface water and groundwater irrigation systems, the conditions needed to stimulate mutual monitoring include: (1) a hierarchical management system; (2) well defined water rights or quotas; (3) control of total water quotas and water sources by the upper hierarchy; and (4) an approximate balance between the water supply or pumping capacity and the water quota. We describe also the institutional requirements for stimulating mutual monitoring.

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    Article provided by Elsevier in its journal Agricultural Water Management.

    Volume (Year): 95 (2008)
    Issue (Month): 3 (March)
    Pages: 331-338

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    Handle: RePEc:eee:agiwat:v:95:y:2008:i:3:p:331-338
    Contact details of provider: Web page: http://www.elsevier.com/locate/agwat

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