Sustainable Lake Basin Water Resource Governance in China: The Case of Tai Lake

Zhengning Pu, Hui Wang, Haili Bian and Jiasha Fu
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Zhengning Pu: School of Economics and Management, Southeast University, 2 Si Pai Lou, Nanjing 210000, China
Hui Wang: WHU otto Beisheim School of Management, Burgplatz 2, 56179 Vallendar, Germany
Haili Bian: School of Economics and Management, Southeast University, 2 Si Pai Lou, Nanjing 210000, China
Jiasha Fu: Academy of Development and Strategy, Renmin University of China, Zhong Guan Cun Rd. 59, Beijing 100872, China

Sustainability, 2015, vol. 7, issue 12, 1-13

Abstract: China’s water pollution is severe and has a negative impact on its residents. Establishing an emissions trading mechanism will be helpful for reducing the pollution. However, the government in China controls the emission rights market. The “GDP Only” preference blocks equitable rules to address the externalities. To modify this distortion, we develop a multi-objective primary distribution model that optimizes economic efficiency, environmental contribution, and fairness. In addition, the geographical location of a company and the industry differential are two key factors that would affect the local government’s decision. According to the simulation results using data from Tai Lake in China, this model can effectively help to meet the political expectation that large-scale manufacturers with poor technology can take the initiative to reduce emissions through emission-rights distribution.

Keywords: water pollution; emission right initial allocation; China; Tai Lake (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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