Can China's water rights trading system promote water resources technological innovation?

Water is an important resource that supports economic development and ecological security, and water pollution and water shortage pose a major threat to human survival. Therefore, improving the utilization of water resources and establishing a water rights trading system (WRTS) have become urgent ta...

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Main Authors: Dawei Gao, Yan Deng, Shuang Gao, Chuangbin Chen
Format: Article
Language:English
Published: Elsevier 2024-01-01
Series:Desalination and Water Treatment
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S1944398624001334
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author Dawei Gao
Yan Deng
Shuang Gao
Chuangbin Chen
author_facet Dawei Gao
Yan Deng
Shuang Gao
Chuangbin Chen
author_sort Dawei Gao
collection DOAJ
description Water is an important resource that supports economic development and ecological security, and water pollution and water shortage pose a major threat to human survival. Therefore, improving the utilization of water resources and establishing a water rights trading system (WRTS) have become urgent tasks for achieving the goal of sustainable socio-economic development. Water resources technology innovation (WRTI) is an important driver of accelerating the construction of ecological civilization in China. In view of this, it is worth exploring whether a WRTS, as a market-based environmental policy targeting water conservation and water use efficiency, can promote WRTI within the framework of China's national policy of resource conservation and environmental protection. To address this question, this innovative study employs a quasi-natural experiment based on the WRTS implemented in China in 2014. The study selects panel data from 30 Chinese provinces (excluding Tibet, Hong Kong, Macau, and Taiwan) spanning the period from 2010 to 2020. It empirically examines the effect of the WRTS on WRTI using the difference-in-differences method. The results of the study show that the WRTS significantly increases the level of WRTI in the pilot region. In addition, the study explores the heterogeneity of WRTI across innovation types and administrative levels within the WRTS pilot districts. The results show that the WRTS is effective in stimulating the growth of WRTI. In addition, national-level pilot districts contribute more significantly to WRTI than provincial-level pilot districts. Overall, these findings provide valuable insights into the role of a WRTS in promoting the optimal allocation of water resources and its combined contribution to water conservation and protection.
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spelling doaj-art-388e685a8f5e4976bfb18cfc4edf38ba2025-08-20T02:01:15ZengElsevierDesalination and Water Treatment1944-39862024-01-0131710011210.1016/j.dwt.2024.100112Can China's water rights trading system promote water resources technological innovation?Dawei Gao0Yan Deng1Shuang Gao2Chuangbin Chen3College of Economics and Management, Zhengzhou University of Light Industry, Zhengzhou City, Henan Province 45003, ChinaCollege of Economics and Management, Zhengzhou University of Light Industry, Zhengzhou City, Henan Province 45003, ChinaSchool of Agriculture, Tokyo University of Agriculture and Technology, Fuchu City, Tokyo 183–0054, JapanBusiness School, Shantou University, Shantou City, Guangdong Province 515063, China; Correspondence to: Business School, Shantou University, No. 243, Daxue Road, Shantou, Guangdong Province, ChinaWater is an important resource that supports economic development and ecological security, and water pollution and water shortage pose a major threat to human survival. Therefore, improving the utilization of water resources and establishing a water rights trading system (WRTS) have become urgent tasks for achieving the goal of sustainable socio-economic development. Water resources technology innovation (WRTI) is an important driver of accelerating the construction of ecological civilization in China. In view of this, it is worth exploring whether a WRTS, as a market-based environmental policy targeting water conservation and water use efficiency, can promote WRTI within the framework of China's national policy of resource conservation and environmental protection. To address this question, this innovative study employs a quasi-natural experiment based on the WRTS implemented in China in 2014. The study selects panel data from 30 Chinese provinces (excluding Tibet, Hong Kong, Macau, and Taiwan) spanning the period from 2010 to 2020. It empirically examines the effect of the WRTS on WRTI using the difference-in-differences method. The results of the study show that the WRTS significantly increases the level of WRTI in the pilot region. In addition, the study explores the heterogeneity of WRTI across innovation types and administrative levels within the WRTS pilot districts. The results show that the WRTS is effective in stimulating the growth of WRTI. In addition, national-level pilot districts contribute more significantly to WRTI than provincial-level pilot districts. Overall, these findings provide valuable insights into the role of a WRTS in promoting the optimal allocation of water resources and its combined contribution to water conservation and protection.http://www.sciencedirect.com/science/article/pii/S1944398624001334Water rights trading systemWater resources technology innovationDifference-in-differences methodsHeterogeneitySustainable development goals
spellingShingle Dawei Gao
Yan Deng
Shuang Gao
Chuangbin Chen
Can China's water rights trading system promote water resources technological innovation?
Desalination and Water Treatment
Water rights trading system
Water resources technology innovation
Difference-in-differences methods
Heterogeneity
Sustainable development goals
title Can China's water rights trading system promote water resources technological innovation?
title_full Can China's water rights trading system promote water resources technological innovation?
title_fullStr Can China's water rights trading system promote water resources technological innovation?
title_full_unstemmed Can China's water rights trading system promote water resources technological innovation?
title_short Can China's water rights trading system promote water resources technological innovation?
title_sort can china s water rights trading system promote water resources technological innovation
topic Water rights trading system
Water resources technology innovation
Difference-in-differences methods
Heterogeneity
Sustainable development goals
url http://www.sciencedirect.com/science/article/pii/S1944398624001334
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AT shuanggao canchinaswaterrightstradingsystempromotewaterresourcestechnologicalinnovation
AT chuangbinchen canchinaswaterrightstradingsystempromotewaterresourcestechnologicalinnovation