Water Resources Compensation Policy and Application on Differential Empowerment System

Abstract:

Through the water compensation models, the article studies the effect of water resources compensation policy on the upstream and downstream areas under differential empowerment systems. Study finds that difference in water resources utilization efficiency is the precondition of water resources compensation policy implementation. With changes of water resources utilization efficiency, the compensation price changes in the same direction and the compensation amount changes in the opposite direction. Finally, water resources compensation policy will improve the welfare of both areas, which is highly consistent with Coase theorem.

• Periodical: Applied Mechanics and Materials (Volume 737)
• Pages: 732-736
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.737.732
• Online since: March 2015
• Authors: Huan Liu*, Zhi Wei Xu
• Keywords: Compensation Amount, Compensation Price, Water Resources Compensation, Water Resources Utilization Efficiency

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