Institutional Capacity's Impact On The Water Saving Effect Of The Water Rights Market In Irrigated Area

With increasing serious shortage of water resources especially in urban and industry in China, low efficiency of agricultural water causes a great deal of waste, which aggravate the contradiction between supply and demand of water resource. In 2005, China began to explore the establishment of water rights market to realize water rights transfer and optimize the allocation of water resources. However, water saving benefits differ from region to region. Therefore, the research on influencing factors of water saving of water rights market has important practical significance.After a literature review on the factors affecting water saving in domestic and international water rights markets, and based on Alchian and Barzel's property rights theory, this paper analyze the influence of self-protection, social ideas and government protection on water saving in water rights market and use the framework of institutional capacity which included relationship resources, knowledge resources and mobilization capacity to measure the degree of self-protection. Then a complete research framework formed.Based on 360 survey statistics, use logistic regression method to analyze the influence of relational resources, knowledge resources, mobilization capacity, social ideas and government protection on water saving in water rights market. Having selected the 18 variables of 5 dimensions, there are 11 variables in the final regression equation. According to regression model, knowledge resources has the most significant influence, followed by government protection, mobilization capacity and social ideas, and relational resources has the least influence.In the end, this paper puts forward suggestions on improving institutional capacity, optimizing social concept and repositioning government role, in order to amplifying the strategies for water saving in water rights market.