Incremental and Average Control Costs in a Model of Water Quality Trading with Discrete Abatement Units

Caplan, Arthur J.

doi:10.1007/s10640-008-9200-5

Cited by 9 publications

(2 citation statements)

References 32 publications

(32 reference statements)

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“…Therefore, it is reasonable to conclude that on-going water transactions should be the fundamental property of a resilient water market [33]. Furthermore, when the cost associated with the development of water market is considered, often recorded before its adoption [34], the primary investments needed to initiate the function are a sunk cost [35], which is not recoverable whenever a water market fails to attract potential traders, not to mention the political goals for efficient water use. On the assumption that "resilience in one time period was gained at the expense of the succeeding period" [36], the indicator adopted also encompasses the temporal scale of water market resilience.…”

Section: Defining Water Market Resilience In Social-ecological Systemsmentioning

confidence: 99%

Resilient or Not: A Comparative Case Study of Ten Local Water Markets in China

Liu

Zhang

2018

Sustainability

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Despite the global expansion of water markets, their resilience has received little scholarly attention, even though they are vulnerable to external and internal disturbances. Since the 1990s, the water market has been actively promoted by China as an important institutional coordination mechanism for efficient water use. This article examines what contextual factors, in configurations, contribute to the resilience of water markets in China. We distinguish between resilient and factitious water markets as two outcome variables and distil four conditions from market environmentalism to explain the variance in their outcomes: ownership of water entitlements, market intermediaries, water pricing, and spot/forward trade categories. Using crisp-set qualitative comparative analysis (csQCA), we analyzed seven resilient and three factitious water markets in China. Our findings show that a water market’s framework is multidimensional and complex and that no necessary conditions contribute to resilience. Two sufficient solutions display the configurational complexity of water markets’ resilience. Path 1 includes strong intermediary, uncompetitive price, and forward water trade. Path 2 includes privatization of water entitlements, spot contracts, and competitive pricing. Weak intermediary together with forward water trade determines factitious water markets. The QCA results reveal that there exist multiple paths that a resilient water market can follow and develop. Therefore, policymakers must be cautious about pushing for water market indiscriminately, especially by over-privatization and unlimited investment in water banks.

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Section: Defining Water Market Resilience In Social-ecological Systemsmentioning

confidence: 99%

Resilient or Not: A Comparative Case Study of Ten Local Water Markets in China

Liu

Zhang

2018

Sustainability

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show abstract

“…install a filtration device). As discussed by a number of sources, these investments often involve large fixed costs and result in substantial increases in abatement capabilities (Sado et al, 2010;Caplan, 2008;Boisvert et al, 2007;EPA 1996). Boisvert et al (2007) and Sado et al (2010) suggest that these fixed technology costs may lead to underinvestment in abatement technology and thus decrease WQT market performance.…”

Section: Introductionmentioning

confidence: 99%