Economic Valuation Of Water And Policy Intervention In Hai Basin

The report explains the value concept of water as goods and resources, summarizes systematically domestic and abroad valuation of water, as well as application of econometric techniques and methods in practice and analysis of relative policy influence. It puts forward the theory of utility value and the amendment of sharing approach which was applied in practice generally in China; and sets forth the viewpoint that the water value based on existing market economy should mainly reflect the rate of return on investment and the importance of water to production or activities.Taking the Hai Basin as the research object where is shorting of water seriously, it calculates the value of water used in agricultural planting in eight representative case districts and the value of the secondary industry and the tertiary industry in six case districts separately. From comparing with each other, the report probes into the problems hidden deeply, and then gives the proposals to improve the value of water used. It also puts forward the advice on EVW-related policies which will be helpful for water to be utilized high-efficiently and distributed reasonably.The report tries to discover the negative effects of water use, in a rough way, estimates the economic losses of water pollution and surface subsidence resulting from groundwater overdraft, presents the impact caused by human activity on natural water resource value, in order to warn the necessity and importance that the whole society should raise the consciousness ensuring sustainable utilization of water resource.The report analyzes the inner link between the natural water resources value andwater resource fee in six case districts, proposes the principles to set up the standard of water resource fee according to natural water resources value.Based on analysis of the five respects in Current Policy Framework of Regional Industrial Development, Water Law, Law of Water Pollution Prevention and Control, Law of Agriculture, and Policy of Coordinated Urban and Rural Development, the current EVW-related policy framework can be described to identify issues and barriers and propose interventions of improving policy system.The report analyzes intervention and influence of the EVW-related policy, from the main nine respects of policies such as industrial structure adjustment, water price adjustment, variation of use water level, food security and planting structural adjustment, agricultural production subsidy, charge with water measured, the protective price of grain, reasonable development and utilization of groundwater, and water resource fee. And then taking water economic value as the direction, the report puts forward the relevant policy suggestions which are considering multifactor to carry on optimum in comprehensive benefit of the national economy.