Research on Allocating lnstitution of Water Resources Based on Externality

It was water resource externalities that lead to market institution failure in allocating water resources,which include pumping cost externality,intergenerational externality,environmental externality,stock externality and investing externality.Similarly,it was the commodity and scarcity properties of water resources that result in government institution failure in allocating water resources.In order to ensure effective supply and sustainable utilization,it must be linked market institution with government regulation to manage water resources.