Weihe River In Shaanxi Province Emissions Trading System

As the largest tributary of the Yellow River, Weihe River has 135,000 square kilometers of it's total drainage area, covering Shaanxi, Gansu and Ningxia provinces. Accounting for 50% of the total drainage area, the drainage area of Weihe River in Shaanxi province covers 67,100 square kilometers, 1/3 of the total area of Shaanxi province, and centralizes 2/3 of the population and GDP, 56% of arable land and 72% of irrigated area. Therefor, the development of the Weihe River drainage area has a vital role in Shaanxi province.However, Weihe river and its tributaries have suffered from severe pollution in recent years. Water pollution, which largely restricts the regional economic development and brings risks to social stability, has aroused wide public concern. This paper discusses trial emissions trading in Weihe watershed, aiming at providing a policy basis and technical support for seeking a sound solution for watershed water pollution.From successful emissions trading practice worldwide, this paper proposes trial emissions trading in Weihe watershed approaching from economic incentives to address water pollution issue. Employing public management, economic theories combined with systematology, governing dynamics, comparative analysis, empirical analysis and policy analysis, the author analyzes the feasibility and necessity of the proposal, and works out a guideline covering the purpose, basic principle, practice basis and market operation of emission trading in Weihe watershed.First, on the basis of the theory of emission trading, with the status quo of Weihe River taken into consideration, the outstanding envirenmental problems are researched. Analysis is taken from three aspects, that is,lag of environmental monitoring capacity,trailing of urban environmental infrastructure construction, lack of mechanisms for pollution control policy.Second, from the analysis of the feasibility and necessity of building a system of emissions trading, proposals are put forward, including the purpose, basic principles, choice of trading pattens and trading market of the building of emissions trading system.Third, from the inherent requirements of the proposed emissions trading system, measures and suggestions for the implementation of emissions trading on Weihe River drainage area are put forward, including the identification of the total pollutant control targets, the establishment of well-developed marketing mechanism, reasonable definition of property rights, the establishment and improvement of modern enterprise system, fostering rational participants, identifying government functions and improving financial market conditions.