Government Role in the Coordinated Mechanism for River Basin Water Quality Control

This paper discusses the necessity of a coordinated mechanism for controlling river basin emissions and water quality. The authors, based on the models by Hung et al, present new models by taking government as the most important role in the coordinated mechanism. The main conclusions from the discussions are: (1) dividing the basin into various coordinated development zones to achieve preset effluents load standards and least -cost abatement; (2) conducting an emissions permits trading system will provide environmental compensation for the upstream firms and realize Pareto improvement for all firms in the basin region.