Assessment of the Water Market in the Xiying Irrigation District, Shiyang River Basin, China

摘要

A water market is an effective way to increase water-use benefits. A preliminary market for irrigation water trading among villages has emerged in the arid area of northwestern China since 2008. This study conducts a quantitative evaluation of the water market at the Xiying irrigation district of the Shiyang River Basin in western China. Network analysis method is employed to assess trading activity and market centrality. The characters of case water market are compared with that of the United States and Australia to discuss the foundations and barriers for developing a mature water market in China. Results show that the case water market in China is undeveloped and is highly regulated by local government although water transactions continuously occur among villages for years. Insufficient incentives and high transaction cost are the key barriers in further developing the market. The indicators proposed in this study for market network analysis are useful for quantitatively evaluating the characters of a water rights market. The lessons derived from the assessment can guide water market development in China and other countries.