Research On Marketization System Of Water Resource In China

Water is the source of life and important material foundation for social and economic development. China is a country short of water resource, water resource are likely to become the most scarce natural resource in the 21st century and has become restraining factor affecting our sustainable social and economic development. Despite the severe shortage of water resources, but there is serious waste of water. The "paradox" originates from mandatory model of distribution of water resources, namely taking administrative measures to allocate water resources, this model not only has the structural defects in water rights, which is unable to impose enough institutional constraints on excess use and waste of water resources, but also results in serious price distortion of water resources, sales much lower than production costs, failure of the leverage of adjustment of water use, extensive growth of water use, serious waste, efficiency losses and damage to the ecology. This fully illuminates that the mandatory model could not efficiently allocate and effectively make use of water resources, it is necessary to take institutional innovation in the case of serious deficiency of water resources.The market is the most effective way to optimize allocation of resource. As scarce economic resources, water resource also can be optimally allocated and efficiently used by means of market. Compared to allocation of water resources without compensation based on the Government's investment plan and budget under the highly concentrated planned-economy system, Water resource marketization means that utilization and allocation of water resources and investment in water infrastructure is no longer dependent on the Government's funds, but is operated and raised through compensated use of spare funds in the market, eliminating monopoly and capital price distortion caused by government intervention.Research on water market institution is the demand to improve efficiency of water utilization. In the market economy, real right law regulates relationship about possession and control of property, lays necessary prerequisite and foundation for the formation and development of the market. Particularity and complexity of water resource determine that the water market is the market of combination of governmental macro-control and market mechanism. To make effective and reasonable use of water resources is to maximize the value of the water resource, effectively promote the establishment of water market, and improve it continuously.According to currently characteristics of water market and development of water market in China, the dissertation firstly discuss about the concept and types of water market, point out orientation of the construction of Chinese water market, in this basis, analysis conditions of construction of the water market, including policy conditions, legal conditions, institutional conditions, economic conditions, engineering and technical conditions, management conditions, and then study the construction of institution in property rights market of water resource, in industry market of water resource and in capital market of water resource, propose institutional system of water resource marketization and provide suggestions about the construction of institutional system of water resource marketization.This dissertation is divided into nine chapters:Chapter 1 Introduction. Mainly demonstrate the purpose and significance of the research, the status of domestic and international research for water resource marketization, ideas, methods and contents of the research, structure of the dissertation.Chapter 2 Background, course and current situation of development of water resource marketization. Mainly discuss current situation and tendency of conflict between water supply and demand in china, introduce traditional ideas of solving the problem of water shortage, in this basis, describe the course and current situation of development of water resource marketization in china, making comparisons about economic performance between planned allocation and marketization allocation of water resource, finally analysis Yiwu-Dongyang in Zhejiang water trading case.Chapter 3 Theoretical foundation of institutional system of water resource marketization. First, analysis the characteristics of the water resource based on public goods theory, externality theory, property rights theory and government regulation theory, present basic concepts on water rights, water rights market, water industry market and water capital market, then discuss prerequisite for the construction of institutional system of water resource marketization, namely capitalization, industrialization of water resource. Finally, discuss about internal logical relation of institutional system of water resource marketization, namely, clearly identified property rights is the prerequisite for water resource marketization, property rights market is the basis for water resource marketization, industry market of water resource is the main content of water resource marketization, capital market is direction of development of water resource marketization. Finally, analyze the current institutional situation of property rights market, industry market, capital market of water resource.Chapter 4 Experience of the foreign construction of institutional system of water resource marketization. Respectively analyze the basic model and institutional construction experience of development of water resource marketization in Australia, the United States, France, Chile, put forward suggestions on the construction of institutional system of water resource marketization.Chapter 5 Institutional research of property rights market of water resource. In the analysis of the basic form of water rights market, put forward model selection, operational mechanism, framework of water rights trading market and the role of government in water trading, and make further discussion by taking the case of the operation of special water rights market-sewage drainage market.Chapter 6 Institutional research of industry market of water resource. First, discuss about pricing in industry market of water resource, in this basis, describe current major industrial characteristics of industry market of water resource and model selection of marketization reform of water resource industry, then analyse property rights and industrialization in the marketization reform of water resource industry, illustrate natural monopoly and market competition in water resource industry, governmental duties and regulation in marketization of water resource industry accordingly.Chapter 7 Institutional research of capital market of water resource. First, describe the basic characteristics and framework of capital market of water resource, further analyse model selection of capital market of water resource, including water stocks, water funds, water options, water futures, water banking, and finally discuss the cultivation of capital market of water resource.Chapter 8 Government regulation of marketization of water resource. It is very important in marketization of water resource to be government regulation. It invoves price regulation and in-out regulation.Chapter 9 Security mechanisms of institutional of marketization of water resource. Security mechanisms of institutional research of marketization of water resource mainly involve law, management system, morality, technology.The main innovations of the dissertation are just as follows:1. Systematic structure of institutional framework of water resource marketization. At present, In China there are more research on the water rights and water pricing, but less research on the overall structure of water resource market. The dissertation reveal that main institutional components of water resource marketization consist of water rights, water pricing, property rights market of water resource, industry market of water resource and capital market of water resource, and demonstrate relationship among society, market, government in the water resource marketization.2. Propose institutional arrangement of capital market of water resource. At present, there are lack of domestic researches on capital market of water resource, most theories are from western countries'studies on water banking, water bonds and stocks, there is no deeply systematic research on China's future capital market of water resource. The study draw lessons from theory and practice on capital market of energy resources and structure institution of capital market of water resource.3. Based on institutional plan of marketization of water resource, propose legal system and management institution of water resource market and provide suggestions on how to implement them.