Extraction of information rent and operation management modes for water resources of East Route of South-to-North Water Transfer Project

Based on the principal-agent theory,the efficiency of water resources allocation under the principal's and the agent's symmetry and asymmetry of information in the East Route of South-to-North Water Transfer Project was analyzed.The results show that under the asymmetry of information,the water supply departments will supply the local water to the water users in the name of transferred water so as to get high fees,the water users will use less or stop using transferred water to save water cost,accordingly,it will have a great impact on the benefits of the water transfer projects.Therefore,the information gap between the principal and the agent must be eliminated to raise the economic benefits of the East Route of South-to-North Water Transfer Project.The unified management between the whole and local water resources should be implemented,and the flat management organization based on the two-level management units should be established so as to reduce the difference of information between the principal and the agent.