Study on the practices of water rights trading in South-to-North Water Diversion Middle Route Project
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Abstract:
Because of the imbalance of regional economic and social development and the asynchrony between the construction of supporting projects and that of the main project, there is a mismatch between the initial allocation of water quotas and the actual water demand in the Middle Route Project of South-to-North Water Diversion (SNWD) . Through the water rights trading , the initial water quotas can be reallocated, so as to realize the balance of water supply and demand in the areas along the project and bring out the best comprehensive benefits of the project. The basic conditions of the Middle Route Project of SNWD are complete, so the necessary requirements for water rights trading have been fulfilled. The Ministry of Water Resources and the Henan provincial government jointly launched a pilot project of trans-regional water rights trading of SNWD. Through practical exploration, the pilot project produced good effects and provided important water rights trading experience for other large water diversion projects. Meanw hile, the pilot project also revealed some deep-seated problems which need to be studied and solved in the future. The water rights trading between Pingdingshan and Xinmi has a good guidance and demonstration effect. The market potential of water rights trading in the Middle Route Project of SNWD is huge. By expanding the scale of trading, creating new trading forms and establishing incentive and restraint mechanisms, the government can promote the rapid development of water rights trading.
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