Market failure or governmental failure? A study of China's water abstraction policies

Wei Li, Melanie Beresford, Guojun Song

Research output: Contribution to journalReview articleResearchpeer-review

Abstract

China's water abstraction policies are significant for illustrating the application of market-based instruments in a transitional and developing country and for shedding light on improving China's water management system. This article presents a new approach to analysing applications of market-based instruments for water resources in China. Expanding the analysis beyond a rational choice approach, it demonstrates the institutional dimension of policy implementation at the local level in China. Four peculiar features of China's water institutions influence local governments in dealing with water abstraction differently from how regulators might expect. This explains local governmental failures and the implementation of water abstraction policies in several ways, including the setting of charges at low levels, a lack of necessary monitoring and sanctions, few incentives to collect charges diligently, and failure to provide accessible information for the public.

LanguageEnglish
Pages951-969
Number of pages19
JournalChina Quarterly
Issue number208
DOIs
Publication statusPublished - Dec 2011

Fingerprint

market failure
abstraction
water
China
market
policy implementation
sanction
local government
water management
incentive
developing world
water resource
policy
developing country
monitoring
lack
resources

Keywords

  • China
  • institutions
  • water policy
  • water resource management

Cite this

Li, Wei ; Beresford, Melanie ; Song, Guojun. / Market failure or governmental failure? A study of China's water abstraction policies. In: China Quarterly. 2011 ; No. 208. pp. 951-969.
@article{eb23c33a95df42ec9fb0cfc6aa4b15f7,
title = "Market failure or governmental failure? A study of China's water abstraction policies",
abstract = "China's water abstraction policies are significant for illustrating the application of market-based instruments in a transitional and developing country and for shedding light on improving China's water management system. This article presents a new approach to analysing applications of market-based instruments for water resources in China. Expanding the analysis beyond a rational choice approach, it demonstrates the institutional dimension of policy implementation at the local level in China. Four peculiar features of China's water institutions influence local governments in dealing with water abstraction differently from how regulators might expect. This explains local governmental failures and the implementation of water abstraction policies in several ways, including the setting of charges at low levels, a lack of necessary monitoring and sanctions, few incentives to collect charges diligently, and failure to provide accessible information for the public.",
keywords = "China, institutions, water policy, water resource management",
author = "Wei Li and Melanie Beresford and Guojun Song",
year = "2011",
month = "12",
doi = "10.1017/S0305741011001081",
language = "English",
pages = "951--969",
journal = "China Quarterly",
issn = "0305-7410",
publisher = "Cambridge University Press",
number = "208",

}

Market failure or governmental failure? A study of China's water abstraction policies. / Li, Wei; Beresford, Melanie; Song, Guojun.

In: China Quarterly, No. 208, 12.2011, p. 951-969.

Research output: Contribution to journalReview articleResearchpeer-review

TY - JOUR

T1 - Market failure or governmental failure? A study of China's water abstraction policies

AU - Li, Wei

AU - Beresford, Melanie

AU - Song, Guojun

PY - 2011/12

Y1 - 2011/12

N2 - China's water abstraction policies are significant for illustrating the application of market-based instruments in a transitional and developing country and for shedding light on improving China's water management system. This article presents a new approach to analysing applications of market-based instruments for water resources in China. Expanding the analysis beyond a rational choice approach, it demonstrates the institutional dimension of policy implementation at the local level in China. Four peculiar features of China's water institutions influence local governments in dealing with water abstraction differently from how regulators might expect. This explains local governmental failures and the implementation of water abstraction policies in several ways, including the setting of charges at low levels, a lack of necessary monitoring and sanctions, few incentives to collect charges diligently, and failure to provide accessible information for the public.

AB - China's water abstraction policies are significant for illustrating the application of market-based instruments in a transitional and developing country and for shedding light on improving China's water management system. This article presents a new approach to analysing applications of market-based instruments for water resources in China. Expanding the analysis beyond a rational choice approach, it demonstrates the institutional dimension of policy implementation at the local level in China. Four peculiar features of China's water institutions influence local governments in dealing with water abstraction differently from how regulators might expect. This explains local governmental failures and the implementation of water abstraction policies in several ways, including the setting of charges at low levels, a lack of necessary monitoring and sanctions, few incentives to collect charges diligently, and failure to provide accessible information for the public.

KW - China

KW - institutions

KW - water policy

KW - water resource management

UR - http://www.scopus.com/inward/record.url?scp=84863354967&partnerID=8YFLogxK

U2 - 10.1017/S0305741011001081

DO - 10.1017/S0305741011001081

M3 - Review article

SP - 951

EP - 969

JO - China Quarterly

T2 - China Quarterly

JF - China Quarterly

SN - 0305-7410

IS - 208

ER -