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Open AccessArticle

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

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School of Economics and Management, Southeast University, 2 Si Pai Lou, Nanjing 210000, China
2
WHU otto Beisheim School of Management, Burgplatz 2, 56179 Vallendar, Germany
3
Academy of Development and Strategy, Renmin University of China, Zhong Guan Cun Rd. 59, Beijing 100872, China
*
Author to whom correspondence should be addressed.
Academic Editors: Yongrok Choi, Malin Song and Seunghwan Myeong
Sustainability 2015, 7(12), 16422-16434; https://doi.org/10.3390/su71215824
Received: 30 September 2015 / Revised: 7 December 2015 / Accepted: 9 December 2015 / Published: 11 December 2015
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. View Full-Text
Keywords: water pollution; emission right initial allocation; China; Tai Lake water pollution; emission right initial allocation; China; Tai Lake
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Pu, Z.; Wang, H.; Bian, H.; Fu, J. Sustainable Lake Basin Water Resource Governance in China: The Case of Tai Lake. Sustainability 2015, 7, 16422-16434.

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