Assessing the Water Parallel Pricing System against Drought in China: A Study Based on a CGE Model with Multi-Provincial Irrigation Water
The reform of water management in China is still in progress, and the pricing of water resources is undertaken in parallel, with a divide between irrigation water and pipe water associated with different users: The supply of irrigation water is regulated by local government and that of pipe water is...
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doaj-e38b4df30dab4cc4bb11e248a5881a202020-11-25T01:57:41ZengMDPI AGWater2073-44412015-06-01773431346510.3390/w7073431w7073431Assessing the Water Parallel Pricing System against Drought in China: A Study Based on a CGE Model with Multi-Provincial Irrigation WaterShuai Zhong0Lei Shen1Jinghua Sha2Mitsuru Okiyama3Suminori Tokunaga4Litao Liu5Jingjing Yan6School of Humanities & Economic Management, China University of Geosciences, Beijing 100083, ChinaInstitute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, ChinaSchool of Humanities & Economic Management, China University of Geosciences, Beijing 100083, ChinaReitaku Institute of Political Economics and Social Studies, Reitaku University, 2-1-1, Hikarigaoka, Kashiwa, Chiba-ken 277-8686, JapanFaculty of Economics and Business Administration, Reitaku University, 2-1-1, Hikarigaoka, Kashiwa, Chiba-ken 277-8686, JapanInstitute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, ChinaSchool of Humanities & Economic Management, China University of Geosciences, Beijing 100083, ChinaThe reform of water management in China is still in progress, and the pricing of water resources is undertaken in parallel, with a divide between irrigation water and pipe water associated with different users: The supply of irrigation water is regulated by local government and that of pipe water is operated by the production sector of pipe water. Based on a literature review and an interview survey of farmers, this study incorporated the water parallel pricing system of China within a computable general equilibrium (CGE) model, where the drought of 2000 is simulated. The 16 provincial irrigation water supplies and their subsidies were also estimated and introduced into this CGE model. The results demonstrated that the effects on the macro-economy were insignificant. However, the effects on agricultural production, particularly on farming production mainly cultivated in northern areas, were significant. Most farming production sectors employed more capital and labor to prevent losses in output from drought. Agricultural labor was shifted from non-farming agricultural production sectors into farming. Both urban and rural households suffered severe losses in welfare and food consumption, even though they benefited from the additional income. Moreover, rural households suffering the worst losses were located in both northern and southern areas.http://www.mdpi.com/2073-4441/7/7/3431water parallel pricing systemmulti-provincial irrigation waterCGE modeldroughtChina |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Shuai Zhong Lei Shen Jinghua Sha Mitsuru Okiyama Suminori Tokunaga Litao Liu Jingjing Yan |
spellingShingle |
Shuai Zhong Lei Shen Jinghua Sha Mitsuru Okiyama Suminori Tokunaga Litao Liu Jingjing Yan Assessing the Water Parallel Pricing System against Drought in China: A Study Based on a CGE Model with Multi-Provincial Irrigation Water Water water parallel pricing system multi-provincial irrigation water CGE model drought China |
author_facet |
Shuai Zhong Lei Shen Jinghua Sha Mitsuru Okiyama Suminori Tokunaga Litao Liu Jingjing Yan |
author_sort |
Shuai Zhong |
title |
Assessing the Water Parallel Pricing System against Drought in China: A Study Based on a CGE Model with Multi-Provincial Irrigation Water |
title_short |
Assessing the Water Parallel Pricing System against Drought in China: A Study Based on a CGE Model with Multi-Provincial Irrigation Water |
title_full |
Assessing the Water Parallel Pricing System against Drought in China: A Study Based on a CGE Model with Multi-Provincial Irrigation Water |
title_fullStr |
Assessing the Water Parallel Pricing System against Drought in China: A Study Based on a CGE Model with Multi-Provincial Irrigation Water |
title_full_unstemmed |
Assessing the Water Parallel Pricing System against Drought in China: A Study Based on a CGE Model with Multi-Provincial Irrigation Water |
title_sort |
assessing the water parallel pricing system against drought in china: a study based on a cge model with multi-provincial irrigation water |
publisher |
MDPI AG |
series |
Water |
issn |
2073-4441 |
publishDate |
2015-06-01 |
description |
The reform of water management in China is still in progress, and the pricing of water resources is undertaken in parallel, with a divide between irrigation water and pipe water associated with different users: The supply of irrigation water is regulated by local government and that of pipe water is operated by the production sector of pipe water. Based on a literature review and an interview survey of farmers, this study incorporated the water parallel pricing system of China within a computable general equilibrium (CGE) model, where the drought of 2000 is simulated. The 16 provincial irrigation water supplies and their subsidies were also estimated and introduced into this CGE model. The results demonstrated that the effects on the macro-economy were insignificant. However, the effects on agricultural production, particularly on farming production mainly cultivated in northern areas, were significant. Most farming production sectors employed more capital and labor to prevent losses in output from drought. Agricultural labor was shifted from non-farming agricultural production sectors into farming. Both urban and rural households suffered severe losses in welfare and food consumption, even though they benefited from the additional income. Moreover, rural households suffering the worst losses were located in both northern and southern areas. |
topic |
water parallel pricing system multi-provincial irrigation water CGE model drought China |
url |
http://www.mdpi.com/2073-4441/7/7/3431 |
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