Unpacking water conflicts: a reinterpretation of coordination problems in China’s water-governance system

Abstract

In China, water conflicts have been traditionally framed as the external costs of economic development and tackled with technocratic measures. This study examines water conflicts through the lens of water diversion, water allocation and water functional zoning. It reframes water conflicts as a result of coordination problems nested in complex inter-jurisdictional interactions. With a game-theoretic illustration, it identifies that individual and group heterogeneities are two challenges to effective coordination. It argues that China’s state-centric water institutions are tailored to optimize overall social utilities, yet they constrain coordination due to insufficient costs and benefits redistribution mechanisms at the local level.