IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v19y2022i4p2443-d753935.html
   My bibliography  Save this article

Assessing Ecological Infrastructure Investments—A Case Study of Water Rights Trading in Lu’an City, Anhui Province, China

Author

Listed:
  • Qiuyan Wang

    (College of Economics and Management, Nanjing Forestry University, Nanjing 210037, China)

  • Qingjian Zhao

    (College of Economics and Management, Nanjing Forestry University, Nanjing 210037, China)

Abstract

Investment in ecological infrastructure construction alters behaviors and quantities of the ecosystem service (ES) provided, and market-clearing can learn the value and scale of ES. We integrated ecological and economic methods to put forward the idea of realizing the aquatic ecological products’ value by investing in water-saving irrigation infrastructure. Firstly, the demand for aquatic ecological products was calculated by a Cobb–Douglas production function, and then the supply of aquatic ecological products was estimated by InVEST and water-saving potential models; Finally, the scale of ecological infrastructure investment and the aquatic ecological products’ value are illustrated by cost-benefit analysis and market equilibrium theory. Research indicates that, (1) industrial water efficiency is high, and the ecological infrastructure construction provides a considerable number of ecological products; (2) implementing water-saving irrigation project is at least 30% more profitable than maintaining the status quo; (3) the market-clearing results showed that the market equilibrium price is about 0.256 USD/m 3 , and the transaction volume is about 1.667 billion m 3 . The output value of industrial enterprises after buying water can reach about 1.37 times of the current stage, reflecting the aquatic ecological products’ value. Investment in water-saving irrigation infrastructure has huge economic, social and ecological benefits, and provides reference for decision-making.

Suggested Citation

  • Qiuyan Wang & Qingjian Zhao, 2022. "Assessing Ecological Infrastructure Investments—A Case Study of Water Rights Trading in Lu’an City, Anhui Province, China," IJERPH, MDPI, vol. 19(4), pages 1-23, February.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:4:p:2443-:d:753935
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/19/4/2443/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/19/4/2443/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David U. Hooper & E. Carol Adair & Bradley J. Cardinale & Jarrett E. K. Byrnes & Bruce A. Hungate & Kristin L. Matulich & Andrew Gonzalez & J. Emmett Duffy & Lars Gamfeldt & Mary I. O’Connor, 2012. "A global synthesis reveals biodiversity loss as a major driver of ecosystem change," Nature, Nature, vol. 486(7401), pages 105-108, June.
    2. Kanhua Yu & Lili Liu & Zhe Chen, 2021. "An Improved Slime Mould Algorithm for Demand Estimation of Urban Water Resources," Mathematics, MDPI, vol. 9(12), pages 1-26, June.
    3. Minghui Yang & Yu Xie, 2021. "Spatial Pattern Change and Ecosystem Service Value Dynamics of Ecological and Non-Ecological Redline Areas in Nanjing, China," IJERPH, MDPI, vol. 18(8), pages 1-18, April.
    4. Dorothée Labarraque & Sébastien Roussel & Léa Tardieu, 2015. "Exploring direct and indirect regulation ecosystem services loss caused by linear infrastructure construction," Revue d'économie politique, Dalloz, vol. 125(2), pages 277-298.
    5. Pires, Aliny P.F. & Amaral, Aryanne G. & Padgurschi, Maíra C.G. & Joly, Carlos A. & Scarano, Fabio R., 2018. "Biodiversity research still falls short of creating links with ecosystem services and human well-being in a global hotspot," Ecosystem Services, Elsevier, vol. 34(PA), pages 68-73.
    6. Song, Xiao-Peng, 2018. "Global Estimates of Ecosystem Service Value and Change: Taking Into Account Uncertainties in Satellite-based Land Cover Data," Ecological Economics, Elsevier, vol. 143(C), pages 227-235.
    7. Morey Burnham & Zhao Ma & Delan Zhu, 2015. "Erratum to: The human dimensions of water saving irrigation: lessons learned from Chinese smallholder farmers," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 32(2), pages 361-362, June.
    8. Wainger, Lisa A. & Helcoski, Ryan & Farge, Kevin W. & Espinola, Brandy A. & Green, Gary T., 2018. "Evidence of a Shared Value for Nature," Ecological Economics, Elsevier, vol. 154(C), pages 107-116.
    9. Morey Burnham & Zhao Ma & Delan Zhu, 2015. "The human dimensions of water saving irrigation: lessons learned from Chinese smallholder farmers," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 32(2), pages 347-360, June.
    10. Didi Stoltenborg & Rutgerd Boelens, 2016. "Disputes over land and water rights in gold mining: the case of Cerro de San Pedro, Mexico," Water International, Taylor & Francis Journals, vol. 41(3), pages 447-467, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhen Yu & Qingjian Zhao, 2022. "Research on the Coordinated Governance Mechanism of Cross-Regional and Cross-Basin Ecological Compensation in the Yangtze River Delta," IJERPH, MDPI, vol. 19(16), pages 1-20, August.
    2. Fangyu Gu & Yu Xie, 2022. "The differential impacts of coercive pressure from environmental law and proactive environmental strategy on corporate environmental performance: The case study of a pulp and paper company," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1909-1925, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mi, Qiao & Li, Xiandong & Li, Xianmei & Yu, Guoxin & Gao, Jianzhong, 2021. "Cotton farmers' adaptation to arid climates: Waiting times to adopt water-saving technology," Agricultural Water Management, Elsevier, vol. 244(C).
    2. Dandan Zhao & Hong Zhou, 2021. "Livelihoods, Technological Constraints, and Low-Carbon Agricultural Technology Preferences of Farmers: Analytical Frameworks of Technology Adoption and Farmer Livelihoods," IJERPH, MDPI, vol. 18(24), pages 1-19, December.
    3. Burnham, Morey & Ma, Zhao, 2018. "Multi-Scalar Pathways to Smallholder Adaptation," World Development, Elsevier, vol. 108(C), pages 249-262.
    4. Erwin, Anna & Ma, Zhao & Popovici, Ruxandra & Salas O’Brien, Emma Patricia & Zanotti, Laura & Silva, Chelsea A. & Zeballos, Eliseo Zeballos & Bauchet, Jonathan & Calderón, Nelly Ramírez & Arce Larrea,, 2022. "Linking migration to community resilience in the receiving basin of a large-scale water transfer project," Land Use Policy, Elsevier, vol. 114(C).
    5. Yongqiang Zhang & Hao Sun & Maosheng Ge & Hang Zhao & Yifan Hu & Changyue Cui & Zhibin Wu, 2023. "Difference in Energy Input and Output in Agricultural Production under Surface Irrigation and Water-Saving Irrigation: A Case Study of Kiwi Fruit in Shaanxi," Sustainability, MDPI, vol. 15(4), pages 1-18, February.
    6. Rasmussen, Laura Vang, 2018. "Re-Defining Sahelian ‘Adaptive Agriculture’ when Implemented Locally: Beyond Techno-fix Solutions," World Development, Elsevier, vol. 108(C), pages 274-282.
    7. Ma, Zhao & Clarke, Mysha & Church, Sarah P., 2018. "Insights into individual and cooperative invasive plant management on family forestlands," Land Use Policy, Elsevier, vol. 75(C), pages 682-693.
    8. Bell, Andrew R. & Ward, Patrick S. & Ashfaq, Muhammad & Davies, Stephen, 2017. "Can agricultural aspirations influence preferences for new technologies? Cropping systems and preferences for high-efficiency irrigation in Punjab, Pakistan," IFPRI discussion papers 1636, International Food Policy Research Institute (IFPRI).
    9. Ding Xiuling & Lu Qian & Li Lipeng & Apurbo Sarkar, 2023. "The Impact of Technical Training on Farmers Adopting Water-Saving Irrigation Technology: An Empirical Evidence from China," Agriculture, MDPI, vol. 13(5), pages 1-20, April.
    10. Yongfeng Tan & Apurbo Sarkar & Airin Rahman & Lu Qian & Waqar Hussain Memon & Zharkyn Magzhan, 2021. "Does External Shock Influence Farmer’s Adoption of Modern Irrigation Technology?—A Case of Gansu Province, China," Land, MDPI, vol. 10(8), pages 1-16, August.
    11. Nibedita Mukherjee & Jean Huge & Farid Dahdouh-Guebas & Nico Koedam, 2014. "Ecosystem service valuations of mangrove ecosystems to inform decision making and future valuation exercises," ULB Institutional Repository 2013/217963, ULB -- Universite Libre de Bruxelles.
    12. Bernhard Dalheimer & Christoph Kubitza & Bernhard Brümmer, 2022. "Technical efficiency and farmland expansion: Evidence from oil palm smallholders in Indonesia," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(4), pages 1364-1387, August.
    13. Eva M. Murgado-Armenteros & María Gutierrez-Salcedo & Francisco José Torres-Ruiz, 2020. "The Concern about Biodiversity as a Criterion for the Classification of the Sustainable Consumer: A Cross-Cultural Approach," Sustainability, MDPI, vol. 12(8), pages 1-14, April.
    14. Pires, Aliny P.F. & Rodriguez Soto, Clarita & Scarano, Fabio R., 2021. "Strategies to reach global sustainability should take better account of ecosystem services," Ecosystem Services, Elsevier, vol. 49(C).
    15. Sarah R. Weiskopf & Forest Isbell & Maria Isabel Arce-Plata & Moreno Di Marco & Mike Harfoot & Justin Johnson & Susannah B. Lerman & Brian W. Miller & Toni Lyn Morelli & Akira S. Mori & Ensheng Weng &, 2024. "Biodiversity loss reduces global terrestrial carbon storage," Nature Communications, Nature, vol. 15(1), pages 1-12, December.
    16. Lin, Yongsheng & Dong, Zhanfeng & Zhang, Wei & Zhang, Hongyu, 2020. "Estimating inter-regional payments for ecosystem services: Taking China’s Beijing-Tianjin-Hebei region as an example," Ecological Economics, Elsevier, vol. 168(C).
    17. Meixia Zhao & Haiyang Zhang & Yu Zhong & Dapeng Jiang & Guohui Liu & Hongqiang Yan & Hongyu Zhang & Pu Guo & Cuitian Li & Hongqiang Yang & Tegu Chen & Rui Wang, 2019. "The Status of Coral Reefs and Its Importance for Coastal Protection: A Case Study of Northeastern Hainan Island, South China Sea," Sustainability, MDPI, vol. 11(16), pages 1-13, August.
    18. Henghui Xi & Wanglai Cui & Li Cai & Mengyuan Chen & Chenglei Xu, 2021. "Evaluation and Prediction of Ecosystem Service Value in the Zhoushan Islands Based on LUCC," Sustainability, MDPI, vol. 13(4), pages 1-13, February.
    19. Tiecheng Huang & Wenjiang Huang & Kun Wang & Yongkang Li & Zhenhai Li & Yong’an Yang, 2022. "Ecosystem Service Value Estimation of Paddy Field Ecosystems Based on Multi-Source Remote Sensing Data," Sustainability, MDPI, vol. 14(15), pages 1-22, August.
    20. Jonathan S. Lefcheck & Graham J. Edgar & Rick D. Stuart-Smith & Amanda E. Bates & Conor Waldock & Simon J. Brandl & Stuart Kininmonth & Scott D. Ling & J. Emmett Duffy & Douglas B. Rasher & Aneil F. A, 2021. "Species richness and identity both determine the biomass of global reef fish communities," Nature Communications, Nature, vol. 12(1), pages 1-9, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:19:y:2022:i:4:p:2443-:d:753935. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.