ABSTRACT
China’s political system is a multilayered hierarchical system structured along two lines: vertically by sector and horizontally by administrative region. Every governmental agency is given a rank, which determines the power relationships. Because local governments determine funding and staffing of local sector departments, local sector departments report directly to their respective local governments instead of the respective superior national sector departments, which impedes the implementation of sector policies issued by sector ministries. Such arrangements create local protectionisms where local governments favor energy development that underpins economic and social development but overlooks the sustaining and protection of water resources. Moreover, lack of inter-provincial coordination leads to the tragedy of the commons, resulting in water resources being over-exploited and degraded. However, there are many opportunities for institutional change to better manage water in China’s coal power sector. After decades of rapid development having exacted a heavy toll on environmental and natural resource degradations, China is embarking upon a transition to a more balanced growth model, with an emphasis on resource sustainability. A number of different governmental programs have been initiated to improve national water governance, including the river chief system, vertical institutional reform, water resource fee-to-tax reform, providing many opportunities for better water management in the power sector.
