Next Article in Journal
Trace Element Mobility during Corg-Enhanced Denitrification in Two Different Aquifers
Previous Article in Journal
The Effect of Wall Shear Stress on Two Phase Fluctuating Flow of Dusty Fluids by Using Light Hill Technique
Article

An Optimal Water Resource Allocation Mechanism Based on Ex-Post Verification and Reward in Huangbai River

by 1 and 2,*
1
School of Economics and Management, Wuhan University, Wuhan 430072, China
2
School of Economics and Management, Hubei University of Science and Technology, Xianning 437100, China
*
Author to whom correspondence should be addressed.
Academic Editors: Athanasios Loukas and Antonio Lo Porto
Water 2021, 13(11), 1588; https://doi.org/10.3390/w13111588
Received: 25 April 2021 / Revised: 19 May 2021 / Accepted: 1 June 2021 / Published: 4 June 2021
(This article belongs to the Section Water Resources Management, Policy and Governance)
Under the current administrative system (AS) in China, the water resources governor allocates limited water resources to several users to realize the utility of water resources, leading to a principal–agent problem. The governor (referred to as the principal and she) wishes to maximize water resource allocation efficiency, while each user (referred to as the agent and he) only wishes to maximize his own quota. In addition, the governor cannot know water demand information exactly since it is the water users’ private information. Hence, this paper builds an ex ante improved bankruptcy allocation rule and an ex post verification and reward mechanism to improve water allocation efficiency from the governor’s perspective. In this mechanism, the governor allocates water among users based on an improved bankruptcy rule before the water is used up, verifies users’ information by various approaches, and poses a negative reward to them if their information is found to be false after the water is used up. Then, this mechanism is applied to Huangbai River Basin. Research results show that the improved allocation rule could motivate users to report demand information more honestly, and ex post verification could motivate water users to further report their true information, which, as a result, could improve the water allocation efficiency. Furthermore, this mechanism could be applied to the allocation of other resources. View Full-Text
Keywords: water resource allocation; water allocation efficiency; ex ante improved bankruptcy allocation rule; ex post verification and reward; Huangbai River water resource allocation; water allocation efficiency; ex ante improved bankruptcy allocation rule; ex post verification and reward; Huangbai River
Show Figures

Figure 1

MDPI and ACS Style

Zhang, H.; Li, J. An Optimal Water Resource Allocation Mechanism Based on Ex-Post Verification and Reward in Huangbai River. Water 2021, 13, 1588. https://doi.org/10.3390/w13111588

AMA Style

Zhang H, Li J. An Optimal Water Resource Allocation Mechanism Based on Ex-Post Verification and Reward in Huangbai River. Water. 2021; 13(11):1588. https://doi.org/10.3390/w13111588

Chicago/Turabian Style

Zhang, Hui, and Jiaying Li. 2021. "An Optimal Water Resource Allocation Mechanism Based on Ex-Post Verification and Reward in Huangbai River" Water 13, no. 11: 1588. https://doi.org/10.3390/w13111588

Find Other Styles
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop