干旱区生态环境知识资源中心

The scarcity of water resource makes the people in the arid areas take water trading to meet the increasing water demand in the region. In the process, the efficiency of water resource allocation and utilization has increased. However, water trading often gives priority to the interests of both the buyers and the sellers, whereas the third parties affected by water trading do not enter the game process of water trading because there is no institutional protection. Thus in the perfectly market - oriented economy, it is difficult for the third - party victims to give pressure to the water buyers and sellers through the market mechanism, and it is difficult to obtain compensation from water trading parties. The presence of third - party effects of water trading gives a serious challenge to water markets and sustainable development of the river. On the basis of studying a large number of domestic and foreign literatures, this paper explores the definition and types of third - party effects of water trading. In particular it studies various third - party positive and negative effects of water trading, and analyzes how the positive effects of water trading promotes the river sustainable development and how the negative effects of water trading hinder the river sustainable development. It finally analyzes the compensation for the positive third - party effects and the governance for the negative third - party effects in order to promote the river sustainable development in water trading areas.