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\begin{document}

\title{Investigating the Feasibility of Water Market in Water Reallocation by
Virtual Gaming Simulation during Drought Periods: A Case Study of the
Taoyuan Area, Taiwan}



\author[1]{Zun-Lin Wang}%
\author[1]{Ching-pin Tung}%
\author[1]{Chung-Yi Lin}%
\author[1]{Bing-Chen Jhong}%
\author[1]{Jung Huang}%
\affil[1]{National Taiwan University}%


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  \date{June 11, 2024}


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\begin{abstract}
Under the impact of global warming and climate change, the frequency of
extreme precipitation and drought events have been increasing. In
Taiwan, the government usually guides agricultural fallows to meet the
needs of domestic, public, and industrial water during droughts.
However, this situation causes that the cultivation rights of farmers
are not guaranteed even though the priority of agricultural water is
higher than that of industrial water. To this end, a framework of
virtual water trading market is proposed in this study to protect the
cultivation right. The water supply system and field water balance
models that use the historical drought event during 2003 to 2004 as the
hydrological scenario have been completed to support the gaming
water-trading auction. Through the gaming simulation process,
agricultural or industrial stakeholders are invited to carry on the
round-designed water trading. Based on the results of player's
decisions, we discuss the feasibility of water market in this region and
investigate the possibility of adopting the water market as a solution
of the water reallocation during times of drought. An application with
the principle of user charge in the Taoyuan region of Taiwan is
successfully implemented. The results show that industrial stakeholders
are willing to pay more costs of water purchase to prevent severe loss
of production line shutdown caused by water shortage. After several
times of the gaming auction, stakeholders may learn the trading
information in terms of evaluating the price of water and estimating the
possible amount of water. This study can further provide a potential
substitute solution to the government and policy makers when the water
reallocation is considered during drought periods.%
\end{abstract}%



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