2008•China Rural Water and HydropowerRequires access

Discussion on Water Resources Market Allocation Theory

Lei Bo

Abstract

Perfect competition market can result in Pareto optimization of water resource allocation by adjusting the function of water price.However,this so-called optimal state cannot solve the problem of balance between equity and efficiency,which will result in the impartiality.To realize the balance,it is necessary for government to intervene the water resources allocation.

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Key concepts: Impartiality, Resource allocation, Microeconomics, Balance (ability), Equity (law), Pareto principle, Economics, Water resources