A Pricing Model for Groundwater Rights in Ningxia, China Based on the Fuzzy Mathematical Model

Zeyu Wang, Juqin Shen, Fuhua Sun, Zhaofang Zhang, Dandan Zhang, Yizhen Jia and Kaize Zhang
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Zeyu Wang: Business School, Hohai University, Nanjing 211100, China
Juqin Shen: Business School, Hohai University, Nanjing 211100, China
Fuhua Sun: Business School, Hohai University, Nanjing 211100, China
Zhaofang Zhang: Business School, Hohai University, Nanjing 211100, China
Dandan Zhang: Business School, Hohai University, Nanjing 211100, China
Yizhen Jia: Business School, Hohai University, Nanjing 211100, China
Kaize Zhang: Business School, Hohai University, Nanjing 211100, China

IJERPH, 2019, vol. 16, issue 12, 1-20

Abstract: To reduce groundwater overexploitation and alleviate water shortages, market mechanisms are introduced to allocate water rights. Scientific and reasonable pricing of groundwater rights is key to ensuring the effectiveness of the groundwater market. Because of the complexity and uncertainty of water resources, this study calculates the price of groundwater rights based on the value of water resources with an evaluation indicator system. The system includes 14 indicators developed with a fuzzy mathematics model addressing three dimensions: environment, society, and economy. The weights of the indicators are determined through the analytic network process (ANP) and the entropy method. The results show that the price of groundwater rights in Ningxia, China increased from 5.11 yuan/m 3 to 5.73 yuan/m 3 between 2013 and 2017; this means the price was basically stable, with a slight increase. The ratio of residents’ water fee expenditures to real disposable income also remained essentially stable, fluctuating around 0.37%, far below the normal level. These data demonstrated that the current regional water price policy does not reflect the true value of groundwater resources; there is room to increase urban water prices. Local governments need speed up water price system reforms and adopt water rights systems to optimize water resource allocations.

Keywords: groundwater; water rights; fuzzy mathematical model; pricing model (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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