A Study of Supply Chain Theory Applied in the Water Resource Market Allocation

With the increasing shortage of water resources and pollution, the reasonable allocation of water resources has become a major field in the study of river basin ecological compensation mechanism. The market allocation of basin water resources is conducive to effective protection and reasonable exploitation of the river basin water resource. Theoretical analyses prove that market allocation of water resources show clear characteristics of supply chain. By applying the supply chain theory to water resource market allocation, the author systematically puts forward the river basin water resource supply chain concept; builds a two-layer river basin water resource supply chain model. To promote benefits, the author suggests transfer payments as a way to coordinate the river basin water resources, and calculates the standard of the payments. Finally, the policy recommendations are proposed to show that related subjects of river basin are willing to participate in river basin ecological compensation and compensation.