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    Title: Water Trading: Locational Water Rights, Economic Efficiency, and Third-Party Effect
    Authors: Hung, Ming-Feng;Shaw, Daigee;Chie, Bin-Tzong
    Contributors: 淡江大學產業經濟學系
    Keywords: water market;locational water right;economic efficiency;third-party effect;return flows
    Date: 2014-03
    Issue Date: 2014-04-21 15:54:58 (UTC+8)
    Publisher: Basel: M D P I AG
    Abstract: Rivers flow downstream and unidirectionally. However, this fact has not yet been utilized in the institutional design for water trading. By utilizing this characteristic, we first designed a water trading system of “locational water rights.” This new system is able to mitigate the return flow-related and instream flow-related third-party effects of volumetric reliability from water transfers. We provided mathematical proof of its economic efficiency. We then applied this water trading system to the case of the Choushui River basin in Taiwan. In this area, agriculture is highly developed while domestic and industrial water demands have increased rapidly. Using an agent-based model simulation, we estimated the potential economic benefits of implementing the system of locational water rights in the Choushui River basin.
    Relation: Water 6(3), p.723-744
    DOI: 10.3390/w6030723
    Appears in Collections:[Graduate Institute & Department of Industrial Economics] Journal Article

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