IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i2p610-d1566997.html
   My bibliography  Save this article

Innovation in Agricultural Water Pricing Systems in China Based on Irrigation Benefits

Author

Listed:
  • Xin Feng

    (The Chinese Academy of Agricultural Sciences, Beijing 100081, China
    State Key Laboratory of Efficient Utilization of Arid and Semi-Arid Arable Land in Northern China, The Institute of Agricultural Resources and Regional Planning, The Chinese Academy of Agricultural Sciences, Beijing 100081, China)

  • Zixuan Liu

    (State Key Laboratory of Efficient Utilization of Arid and Semi-Arid Arable Land in Northern China, The Institute of Agricultural Resources and Regional Planning, The Chinese Academy of Agricultural Sciences, Beijing 100081, China)

  • Kui Li

    (The Chinese Academy of Agricultural Sciences, Beijing 100081, China)

  • Wenlai Jiang

    (State Key Laboratory of Efficient Utilization of Arid and Semi-Arid Arable Land in Northern China, The Institute of Agricultural Resources and Regional Planning, The Chinese Academy of Agricultural Sciences, Beijing 100081, China)

  • Yang Liu

    (State Key Laboratory of Efficient Utilization of Arid and Semi-Arid Arable Land in Northern China, The Institute of Agricultural Resources and Regional Planning, The Chinese Academy of Agricultural Sciences, Beijing 100081, China)

Abstract

The comprehensive reform of agricultural water prices is an important component of China’s agricultural water conservation strategy and is highly important for ensuring national water security and sustainable agricultural development. Given the difficulty in raising water prices due to the limited carrying capacity of farmers in the reform, there is a pressing need to consider the implementation of agricultural water price sharing as a potentially viable strategy. Based on the grain production data from 2000 to 2018, the proportion of agricultural water prices borne by farmers and governments in different regions were calculated via the C-D production function method and the “Mitchell scoring + Expert scoring” method in the study. The results revealed that the average sharing coefficient of irrigation benefits for grain crops in China is 0.245. The sharing proportion of agricultural water prices for farmers in seven major geographical regions are ranked as follows: Northwest China (0.467) > Central China (0.427) > Southwest China (0.389) > Northeast China (0.358) > North China (0.319) > East China (0.312) > South China (0.163), while the sharing proportion of the government is 0.533, 0.573, 0.611 0.642, 0.681, 0.688, and 0.837. We proposed a systematic approach that directly ties cost distribution to the benefits received, and determined the proportion of agricultural water prices shared by farmers and governments, which is in line with the farmers’ economic interests and psychological demands. Furthermore, suggestions were proposed regarding the implementation of a rational agricultural water price-sharing policy.

Suggested Citation

  • Xin Feng & Zixuan Liu & Kui Li & Wenlai Jiang & Yang Liu, 2025. "Innovation in Agricultural Water Pricing Systems in China Based on Irrigation Benefits," Sustainability, MDPI, vol. 17(2), pages 1-11, January.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:2:p:610-:d:1566997
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/2/610/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/2/610/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mattoussi, Wided & Mattoussi, Foued & Larnaout, Afrah, 2023. "Optimal subsidization for the adoption of new irrigation technologies," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1126-1141.
    2. Abu-Madi, Maher O., 2009. "Farm-level perspectives regarding irrigation water prices in the Tulkarm district, Palestine," Agricultural Water Management, Elsevier, vol. 96(9), pages 1344-1350, September.
    3. Berbel, J. & Gomez-Limon, J. A., 2000. "The impact of water-pricing policy in Spain: an analysis of three irrigated areas," Agricultural Water Management, Elsevier, vol. 43(2), pages 219-238, March.
    4. Lu, Shibao & Bai, Xiao & Li, Wei & Wang, Ning, 2019. "Impacts of climate change on water resources and grain production," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 76-84.
    Full references (including those not matched with items on IDEAS)

    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. Basil Manos & Thomas Bournaris & Mohd Kamruzzaman & Moss Begum & Ara Anjuman & Jason Papathanasiou, 2006. "Regional Impact of Irrigation Water Pricing in Greece under Alternative Scenarios of European Policy: A Multicriteria Analysis," Regional Studies, Taylor & Francis Journals, vol. 40(9), pages 1055-1068.
    2. Francisco J. André & Laura Riesgo, 2006. "A Duality Procedure to Elicit Nonlinear Multiattribute Utility Functions," Working Papers 06.02, Universidad Pablo de Olavide, Department of Economics.
    3. Prakashan Veettil & Stijn Speelman & Guido Huylenbroeck, 2013. "Estimating the Impact of Water Pricing on Water Use Efficiency in Semi-arid Cropping System: An Application of Probabilistically Constrained Nonparametric Efficiency Analysis," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(1), pages 55-73, January.
    4. Christian Franco-Crespo & Jose Maria Sumpsi Viñas, 2017. "The Impact of Pricing Policies on Irrigation Water for Agro-Food Farms in Ecuador," Sustainability, MDPI, vol. 9(9), pages 1-18, August.
    5. Gomez-Limon, Jose A. & Riesgo, Laura, 2004. "Irrigation water pricing: differential impacts on irrigated farms," Agricultural Economics, Blackwell, vol. 31(1), pages 47-66, July.
    6. Esteve, Paloma & Varela-Ortega, Consuelo & Blanco-Gutiérrez, Irene & Downing, Thomas E., 2015. "A hydro-economic model for the assessment of climate change impacts and adaptation in irrigated agriculture," Ecological Economics, Elsevier, vol. 120(C), pages 49-58.
    7. Tiantian Ma & Qingbai Hu & Changle Wang & Jungang Lv & Changhong Mi & Rongguang Shi & Xiaoli Wang & Yanying Yang & Wenhao Wu, 2022. "Exploring the Relationship between Ecosystem Services under Different Socio-Economic Driving Degrees," IJERPH, MDPI, vol. 19(23), pages 1-17, December.
    8. Gilmour, J.K. & Letcher, R.A. & Jakeman, A.J., 2005. "Analysis of an integrated model for assessing land and water policy options," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 69(1), pages 57-77.
    9. Julio Berbel & M. Mesa-Jurado & Juan Pistón, 2011. "Value of Irrigation Water in Guadalquivir Basin (Spain) by Residual Value Method," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(6), pages 1565-1579, April.
    10. de Fraiture, Charlotte & Perry, C. J., 2007. "Why is agricultural water demand unresponsive at low price ranges?," IWMI Books, Reports H040602, International Water Management Institute.
    11. Zhuohui Yu & Shiping Mao & Qingning Lin, 2022. "Has China’s Carbon Emissions Trading Pilot Policy Improved Agricultural Green Total Factor Productivity?," Agriculture, MDPI, vol. 12(9), pages 1-21, September.
    12. Balali, Hamid & Khalilian, Sadegh & Viaggi, Davide & Bartolini, Fabio & Ahmadian, Majid, 2011. "Groundwater balance and conservation under different water pricing and agricultural policy scenarios: A case study of the Hamadan-Bahar plain," Ecological Economics, Elsevier, vol. 70(5), pages 863-872, March.
    13. Song, Yuegang & Zhang, Bicheng & Wang, Jianhua & Kwek, Keh, 2022. "The impact of climate change on China's agricultural green total factor productivity," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    14. Samira Shayanmehr & Jana Ivanič Porhajašová & Mária Babošová & Mahmood Sabouhi Sabouni & Hosein Mohammadi & Shida Rastegari Henneberry & Naser Shahnoushi Foroushani, 2022. "The Impacts of Climate Change on Water Resources and Crop Production in an Arid Region," Agriculture, MDPI, vol. 12(7), pages 1-22, July.
    15. Joan Pujol & Meri Raggi & Davide Viaggi, 2006. "The potential impact of markets for irrigation water in Italy and Spain: a comparison of two study areas ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(3), pages 361-380, September.
    16. Guifang Li & Dongdong Ma & Cuiping Zhao & Hang Li, 2023. "The Effect of the Comprehensive Reform of Agricultural Water Prices on Farmers’ Planting Structure in the Oasis–Desert Transition Zone—A Case Study of the Heihe River Basin," IJERPH, MDPI, vol. 20(6), pages 1-17, March.
    17. Jeder, Houcine & Sghaier, Mongi & Louhichi, Kamel & Reidsma, Pytrik, 2014. "Bio-economic modelling to assess the impact of water pricing policies at the farm level in the Oum Zessar watershed, southern Tunisia," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 15(2), pages 1-19.
    18. Yiyu Feng & Ming Chang & Erga Luo & Jing Liu, 2023. "Has Property Rights Reform of China’s Farmland Water Facilities Improved Farmers’ Irrigation Efficiency?—Evidence from a Typical Reform Pilot in China’s Yunnan Province," Agriculture, MDPI, vol. 13(2), pages 1-27, January.
    19. Theesfeld Insa & Klümper Frederike, 2016. "Interplay between structural change in Central Asian agriculture and institutional scarcity of land and water: evidence from Tajikistan," ZFW – Advances in Economic Geography, De Gruyter, vol. 60(1-2), pages 81-96, June.
    20. de Fraiture, Charlotte & Perry, C. J., 2007. "Why is agricultural water demand unresponsive at low price ranges?," Book Chapters,, International Water Management Institute.

    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:jsusta:v:17:y:2025:i:2:p:610-:d:1566997. 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.