Research On The Institution Of Water Demand Management

It is well known that China is confronted with the problem of water shortage, and the situation is aggravating day after day. The traditional solution is the water supply management institution, which means increasing water supply by water conservancy and technology. But, the water supply is gradually shrinking and the marginal exploitive cost is rising. Consequently, it is feasible to solve water crisis through water demand management institution due to the limits of the traditional way.So the principal objective of this paper is to construct the basic frame of water demand management institution. The main contents and contributions of this paper are:Firstly, the author discusses the factors which could impact on water demand, and on the base of that constructs the macroscopical water demand function and furthermore the basic frame of the water demand management institution. The author believes that, the basic frame of the water demand management institution mainly contains two parts: one is the environment of that, and the other is the implementation mechanism of that. The former includes the formal and informal institution, and the latter means the main management tools and the assistant management tools.Secondly, it discusses about the main content of water demand management institution in detail. Focusing on the aspects of controlling water demand growth and offering water-saving incentives, this paper analyzes the theoretic frame of water rights transaction and its efficiency, implementation constraint condition, transaction mode from the view of canonical parse and experience. And also the adjustment mechanisms of water price are discussed, especially how it works under the China's condition.Finally, the author offers the probable way of shifting the water supply management institution to the water demand management institution. That is, comprehensively using the modes of induced institution-transformation and compulsive institution-transformation, and based on the former one, complemented on the latter one.This paper can provide the theoretic guidance and policy suggestions for the establishment and perfection of the water demand management institution in china, so that China can realize the declining stage of Water Kuznets Curve in the daily water consumption as soon as possible.