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Water Rights Trading Application to Water-Rich Regions in Southern China

Min Zhu, Fengping Wu, Junyuan Shen, Fei Bi

Abstract: Water markets represent a favorable means to reallocate water resources. With global changes in water consumption patterns and caps, water rights trading has become an appropriate method to reallocate water between agriculture and industry in water-rich regions. This paper analyzed the economic benefits of water trading in water-rich regions, with reference to a case study of southern China. Based on a regional input–output table, the economic benefits that water trading brings to the regional economy were quantified, including related economic benefits, indirect economic benefits, and cumulative economic benefits. The results showed that water trading yields significant economic benefits for the regional economy because of the accompanying technological and economic connections established among different sectors. This study provides a reference point for water rights trading policies in water-rich regions.
Keywords: Water rights trading / Economic benefit / Input–output analysis / Water-rich regions / Case study

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