Water Resource Configuration Mode Study Again

Applying the analytical tools of NIE and case study method,this paper takes systematic research on the mechanism and re-allocation patterns of water resource. We analyze three kinds of re-allocation patterns in a unified framework with characteristic identification of water resource’s initial rights.through analyzing the transaction costs with the initial rights,gets to a specific re-allocation pattern after introducing state actions.At the last,we take Pareto Improvement and Nash Equilibrium as criterions to evaluate each specific re-allocation of water resource.According to the characteristic difference of state actions,this papaer difines three basic re-allocation patterns of water resource:government-led pattern,government involvement pattern and market transaction pattern.The three cases selected by this paper,that are Water Rights Transition in NingXia,Water Rights Trade among Famers in ZhangYe and Water Transfer from Owens Valley to Los Angeles,respectively correspond with three re-allocation patterns above. In the case of Water Rights Transition in NingXia,the study suggests, under the circumstance of unclear water initial rights and high transaction cost among famers and firms,the local governments actively and directly intervene and push forword a kind of re-allocation pattern of water resource which can be expressed as that firms make up farmers for saving water so that industry gets the water saved by agriculture.The initial circumstance in the case of Water Rights Trade among Farmers in ZhangYe is alike to the case of NingXia,but the market plays more role in the pattern of ZhangYe than in the pattern of NingXia only because the governments in ZhangYe involve and support the water transaction indirectly.The success of water transfer from Owens Valley to Los Angeles in USA is a typical case of water transfer through market.The significance of clear water rights and proper state actions to market transaction can be found in the case.All of three kinds of re-allocation patterns reflect the important role of initial water rights and state actions.This paper introduces a way to compare and evaluate various kinds of water resource re-allocation patterns.When comparing various kinds of re-allocation patterns,we should firstly examine the initial rights of water resource and state actionsjust the interaction of which finally determined the re-allocation patterns. When evaluating all kinds of re-allocation patterns of water resource, it is more feasible in the tool of Pareto Improvement than Pareto Optimality.Provided the outcome of one re-allocation pattern of water resource is a kind of Pareto Improvement,the pattern will be feasible and should be encouraged.Moreover,this paper takes Nash Equilibrium as the analytical tool to judge the stability of a kind of re-allocation pattern of water resource.If a pattern don’t satisfy basic requirements of Nash Equilibrium,we can anticipate that the pattern wouldn’t be stable in implementation and operation.Nash equilibrium has important guide significance for governments to predominantly or indirectly construct re-allocation pattern of water resource.Usin this way,we compare and evaluate these three patterns discussed in the paper,but it doesn’t mean we deny the effectiveness of government-led pattern and government involvement pattern in some specific circumstance.At the end,we summarize this study,and point out that initial rights of water resource and state actions are vital to re-allocation of water resource,and given the initial rights of water resource,state actions are the most important variable to determine the re-allocation pattern of water resource.Considering the reality of our country,this paper puts forward some policy suggestions,all of which reflect the importance of defining water rights and social involement.