Water Resources Management

, Volume 30, Issue 7, pp 2227–2243 | Cite as

The Application of a Water Rights Trading Model Based on two-Stage Interval-Parameter Stochastic Programming

  • Qiang FuEmail author
  • Ke Zhao
  • Dong Liu
  • Qiuxiang Jiang
  • Tianxiao Li
  • Changhong Zhu


In recent decades, increasing conflicts have occurred between different water users because of issues related to water resource allocation. To better allocate water resources, this study adopts the latest water rights trading model instead of the traditional water resources allocation model and combines it with a two-stage interval-parameter stochastic programming model (TISP). The combined model was applied to the Sanjiang Plain with multi-area, multi-source, and multi-water users, and the optimized promised water availability for every user in the area was obtained. The analysis shows that a higher promised water availability corresponds to a higher benefit but also promotes additional risks because of water shortages, whereas a lower promised water availability corresponds to a lower benefit, although it is more likely to result in water waste at high inflow levels. The combined model formed an effective link between water use benefits and water deficiency punishments that enabled us to obtain an optimized promised water availability that considers benefits and risks simultaneously. The second result is that the water rights trading model can improve the utilization efficiency of water resources, which are typically transferred from inefficient water use areas to efficient water use areas, resulting in a benefit to all areas. Additionally, in the water rights trading model, self-profit motivation at a micro-level can emerge in adaptation at a macro-level, which stabilizes the water resource system and reduces the possibility of system collapse because of extreme water shortages.


Water rights trading Uncertainty Two-stage interval-parameter stochastic programming Water resource allocation 



This research has been supported by funds from national natural science foundation of China (51179032, 51279031, 51209038, 51479032, 51579044); Program for new century excellent talents in university(NCET-11-0952); Scientific research projects of public welfare industry of Ministry of Water Resources (201301096); Initial capital for doctors of Northeast Agricultural University (2012RCB58).

Compliance with ethical standards

Conflict of interest

The authors declare that they have no conflict of interest.


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Copyright information

© Springer Science+Business Media Dordrecht 2016

Authors and Affiliations

  • Qiang Fu
    • 1
    • 2
    Email author
  • Ke Zhao
    • 1
    • 2
  • Dong Liu
    • 1
    • 2
  • Qiuxiang Jiang
    • 1
    • 2
  • Tianxiao Li
    • 1
    • 2
  • Changhong Zhu
    • 1
    • 2
  1. 1.School of Water Conservancy & Civil EngineeringNortheast Agricultural UniversityHarbinChina
  2. 2.Collaborative Innovation Centre of Promote Grain Production in Heilongjiang ProvinceKey Laboratory of Water-saving Agriculture of Regular Institutions of Higher Education in Heilongjiang ProvinceHarbinChina

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