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Agricultural water rights trading and virtual water export compensation coupling model: A case study of an irrigation district in China

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  • Wang, Y.B.
  • Liu, D.
  • Cao, X.C.
  • Yang, Z.Y.
  • Song, J.F.
  • Chen, D.Y.
  • Sun, S.K.

Abstract

Water rights trading is an effective way to promote efficient water allocation. The implementation of agricultural water rights trading can promote water saving, but may reduce the agricultural production scale in irrigation districts. Compensation for crop virtual water export can increase the benefits of agricultural water use, so as to enhance the competitiveness of economic benefit for agricultural production. This paper analyzed the relationship between agricultural water rights trading and virtual water export compensation, then a bi-level programming model was established with multiple objectives. The model was applied in Hetao irrigation district by using enumeration method. The changes of new water use of different users, benefits of irrigation district and water users with different water prices were analyzed and the optimization schemes were selected. Results show that the model through adjusting price variables including both water rights trading price and virtual water compensation price to optimize the allocation of agricultural water quantity saved among different water users, which at the same time makes both the irrigation management administration and water users get more benefit. The optimized scheme can raise the willingness of water saving in irrigation district, and enhance the competitiveness of agricultural water user against non-agricultural water user. This study provides a new method and scientific basis for the water resource management agency in their policy making.

Suggested Citation

  • Wang, Y.B. & Liu, D. & Cao, X.C. & Yang, Z.Y. & Song, J.F. & Chen, D.Y. & Sun, S.K., 2017. "Agricultural water rights trading and virtual water export compensation coupling model: A case study of an irrigation district in China," Agricultural Water Management, Elsevier, vol. 180(PA), pages 99-106.
    • Handle: RePEc:eee:agiwat:v:180:y:2017:i:pa:p:99-106
    DOI: 10.1016/j.agwat.2016.11.006
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    References listed on IDEAS

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    9. Sun, J.X. & Yin, Y.L. & Sun, S.K. & Wang, Y.B. & Yu, X. & Yan, K., 2021. "Review on research status of virtual water: The perspective of accounting methods, impact assessment and limitations," Agricultural Water Management, Elsevier, vol. 243(C).
    10. Delpasand, Mohammad & Bozorg-Haddad, Omid & Goharian, Erfan & Loáiciga, Hugo A., 2023. "Virtual water trade: Economic development and independence through optimal allocation," Agricultural Water Management, Elsevier, vol. 275(C).
    11. Jing Liu & Yu Zhang & Zhongbo Yu, 2018. "Evaluation of Physical and Economic Water-Saving Efficiency for Virtual Water Flows Related to Inter-Regional Crop Trade in China," Sustainability, MDPI, vol. 10(11), pages 1-10, November.
    12. Changhai Qin & Shan Jiang & Yong Zhao & Yongnan Zhu & Qingming Wang & Lizhen Wang & Junlin Qu & Ming Wang, 2022. "Research on Water Rights Trading and Pricing Model between Agriculture and Energy Development in Ningxia, China," Sustainability, MDPI, vol. 14(23), pages 1-15, November.
    13. Jing Liu & Xinchun Cao & Binquan Li & Zhongbo Yu, 2018. "Analysis of Blue and Green Water Consumption at the Irrigation District Scale," Sustainability, MDPI, vol. 10(2), pages 1-15, January.
    14. Jing Liu & Mengyang Wu & Zhongbo Yu, 2018. "Evaluation of Environmental Impacts Due to Blue Water Consumption in China from Production and Consumption Perspectives," IJERPH, MDPI, vol. 15(11), pages 1-17, November.
    15. Li, Mo & Fu, Qiang & Singh, Vijay P. & Liu, Dong, 2018. "An interval multi-objective programming model for irrigation water allocation under uncertainty," Agricultural Water Management, Elsevier, vol. 196(C), pages 24-36.
    16. Heidarizadeh, Mohammad & Ahmadian, Mohammad, 2019. "Capacity certificate mechanism: A step forward toward a market based generation capacity incentive," Energy, Elsevier, vol. 172(C), pages 45-56.
    17. Haorui Chen & Zhanyi Gao & Wenzhi Zeng & Jing Liu & Xiao Tan & Songjun Han & Shaoli Wang & Yongqing Zhao & Chengkun Yu, 2017. "Scale Effects of Water Saving on Irrigation Efficiency: Case Study of a Rice-Based Groundwater Irrigation System on the Sanjiang Plain, Northeast China," Sustainability, MDPI, vol. 10(1), pages 1-18, December.
    18. Fei, Rilong & Xie, Mengyuan & Wei, Xin & Ma, Ding, 2021. "Has the water rights system reform restrained the water rebound effect? Empirical analysis from China's agricultural sector," Agricultural Water Management, Elsevier, vol. 246(C).
    19. Yan, Dong & Chen, Lin & Sun, Huaiwei & Liao, Weihong & Chen, Haorui & Wei, Guanghui & Zhang, Wenxin & Tuo, Ye, 2022. "Allocation of ecological water rights considering ecological networks in arid watersheds: A framework and case study of Tarim River basin," Agricultural Water Management, Elsevier, vol. 267(C).

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