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An Innovative Emergy Quantification Method for Eco-economic Compensation for Agricultural Water Rights Trading

Author

Listed:
  • Cuimei Lv

    (Zhengzhou University)

  • Huiqin Li

    (Zhengzhou University)

  • Minhua Ling

    (Zhengzhou University)

  • Xi Guo

    (Zhengzhou University)

  • Zening Wu

    (Zhengzhou University)

  • Changkuan Gu

    (Kaifeng Hydrology and Water Resources Survey Bureau)

  • Yang Li

    (Kaifeng Hydrology and Water Resources Survey Bureau)

Abstract

Agricultural water rights trading, involving the sale of saved irrigation water to users experiencing a water shortage, has become an efficient means of improving water use efficiency and optimizing water management. However, after the amount of irrigation water is reduced, it is prone to externalities, resulting in a decline in the ecosystem service functions of water sellers and economic, social, ecological, and environmental losses. Sufficient compensation for such losses is the key to the sustainable development of water markets. Based on the emergy theory of ecological economics and externality theory, the eco-economic losses of water sellers caused by agricultural water rights trading are analysed. An innovative emergy quantification method that includes economic, social, and eco-environmental compensation is proposed. Additionally, eco-economic compensation for water rights trading in Dongyang-Yiwu, China, is quantified as a case study. The results show that eco-economic compensation has generally risen continuously, from 94 million Chinese Yuan (¥) in 2013 to ¥114 million in 2017. Taking 2005 as the base year, this study finds that the present value of eco-economic compensation is ¥755 million, while the actual trading price is only ¥256 million. These results indicate that the actual price does not fully reflect the economic, social, and eco-environmental losses caused by trading. The method proposed in this study can provide a reference for the reasonable quantification of the compensation of water sellers.

Suggested Citation

  • Cuimei Lv & Huiqin Li & Minhua Ling & Xi Guo & Zening Wu & Changkuan Gu & Yang Li, 2021. "An Innovative Emergy Quantification Method for Eco-economic Compensation for Agricultural Water Rights Trading," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 35(3), pages 775-792, February.
    • Handle: RePEc:spr:waterr:v:35:y:2021:i:3:d:10.1007_s11269-020-02717-y
    DOI: 10.1007/s11269-020-02717-y
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    References listed on IDEAS

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    1. Danyang Di & Zening Wu & Huiliang Wang & Cuimei Lv, 2020. "A Double-Layer Dynamic Differential Game Model for the Optimal Trading Quantity of Water and Price Setting in Water Rights Transactions," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 34(1), pages 245-262, January.
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    Cited by:

    1. Yali Lu & Linfang Fan & Luyu Zhai, 2023. "Evolutionary Game Analysis of Inter-provincial Diversified Ecological Compensation Collaborative Governance," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 37(1), pages 341-357, January.
    2. Úrsula da Silva Morales & Marco Aurélio Rotta & Darci Carlos Fornari & Danilo Pedro Streit, 2022. "Aquaculture Sustainability Assessed by Emergy Synthesis: The Importance of Water Accounting," Agriculture, MDPI, vol. 12(11), pages 1-25, November.
    3. Linjing Ren & Xiaojun Yang, 2023. "Adoption and shift of water-saving strategies to policy shock: based on social-ecological system analysis," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 37(10), pages 4015-4037, August.
    4. Xiumei Xu & Yilan Tan & Chao Feng, 2022. "Knowledge structure of emergy theory in the field of eco‐compensation research: A grounded theory approach," Natural Resources Forum, Blackwell Publishing, vol. 46(3), pages 351-373, August.
    5. Feng Li & Xuewan Du & Pengchao Zhang & Huimin Li & Xiaoxia Fei, 2023. "Co-Evolutionary Mechanism of Stakeholders’ Strategies in Comprehensive Agricultural Water Price Reform: The View of Evolutionary Game Based on Prospect Theory," Sustainability, MDPI, vol. 15(15), pages 1-31, August.
    6. Jianmei Zhang & Jiwei Zhu & Yu Liu & Nan Lu & Wenxing Fang, 2022. "The Economic Impact of Payments for Water-related Ecosystem Services on Protected Areas: a Synthetic Control Analysis," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 36(5), pages 1535-1551, March.
    7. Cuimei Lv & Yifan He & Wenge Zhang & Changkuan Gu & Yang Li & Denghua Yan, 2021. "Quantitative Analysis of Eco-economic Benefits of Urban Reclaimed Water Greening Based on Emergy Theory," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 35(14), pages 5029-5047, November.

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