By Li Weiming & Gu Shuzhong, Research Institute of Resources and Environment Policies of DRC; Li Zhaojie, Wang Yining & Chen Bo, Development Research Center of the Ministry of Water Resources

Research Report, No.207, 2018 (Total 5482) 2018-11-29

Abstract: The water rights trading, through the government’s macro control and the market force, could optimize the allocation and efficient utilization of and promote the conservation and protection of water resources with relevant economic measures. To carry out the trading of water rights, a series of basic conditions need to be met. This paper analyzes the basic conditions for water rights trading in China respectively from the aspects of legal system, initial water rights, market platform, facility guarantee and external drivers and illustrates the advantages and disadvantages relating to the trading. Based on this, the paper puts forward targeted policy suggestions to strengthen the infrastructure construction of water rights trading in China. Firstly, the revision of relevant laws and regulations on water rights system need to be accelerated to cement the institutional foundation of water rights trading. Secondly, the aggregate water consumption should be controlled strictly to create conditions for the cultivation of a water rights trading market. Thirdly, experience and models relating to water rights pilot programs should be summarized to promote the ownership confirmation of different kinds of water rights and advance more trading projects. Fourthly, a layered and diversified trading platform of water rights should be built according to local conditions. Fifthly, technical and operating conditions need to be strengthened to support the water rights trading and the water market construction. Finally, the risk prevention and control mechanism for water rights trading need to be improved to prevent and defuse risks in the trading of water rights.

Key words: water rights trading, basic conditions, water rights pilot programs, trading platform.