Research On The Common Pool Water Trading System

Water trading is an important way of water right optimal allocation through the market mechanism,which is the foothold of water right system.It has been proved that water trading could improve the efficiency of water resources in many countries.However,water trading in china is not perfect.This article established the mathematical model of pooled water trading,analyzed the trader bidding behavior,economic efficiency and market equilibrium in the market,made the statistical analysis of water trading data in Australia,improved the original common pool algorithm and designed the water trading system for Shi Yang river basin in China,which is typical arid river basin.First of all,the pair-wise and common pool water trading system was compared,which are two basic water trading system in the world.Based on HARA function efficiency model,the market equilibrium was calculated.According to the analysis,the research result of common pool is stable and efficient.Besides,a general equilibrium model(CGE)of common pool was established,the result indicated that the equilibrium was social welfare maximization,which is known as the Pareto Optimality.Secondly,the research of trader bidding behavior in the market,the comprehensive income of trader was calculated,based on balancing the trading risk and benefit.The best strategy of bidding was given according to the optimal incomes assessment.The split bidding was analyzed,and result showed split bidding can increase the comprehensive income of trader.Furthermore,information transparency was studied in the market through solving the equilibrium of game among the buyers,the result showed increasing disclosure of information can improve the effectiveness of price discovery in market.Then,according to the statistical analysis of water trading in Australia,periodic tend of trader number,volume and price was found.By analyzing the internal structure of market,different market entity was identified,census the bidding of traders,we can summarize the characteristic of trader bidding,compared with response of trader,some problem was found,such as the higher risk aversion of trader and inactive of water seller market in dry area.Finally,based on traditional common pool water trading system,the improved common pool algorithm was proposed,the trader space was coupled into common pool market.,which adapt the practice of water management in china better.A case study of Shi Yang river basin was took,which is typical arid river basin in northwest of china,evaluated the achievement of comprehensive treatment in Shi in Shi Yang river basin from 2008.According the improved algorithm,a water trading system was designed for Shi Yang river basin,which can provide a reference to draw water rights system in China.