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Impact analysis of reducing multi-provincial irrigation subsidies in China: a policy simulation based on a CGE model
Zhong, Shuai1; Shen, Lei1; Liu, Litao1; Zhang, Chao1,2; Shen, Ming1,2
2017-04-01
Source PublicationWATER POLICY
ISSN1366-7017
Volume19Issue:2Pages:216-232
Corresponding AuthorZhang, Chao(zhangc.13b@igsnrr.ac.cn)
AbstractWater pricing policy is believed to be an efficient method for addressing the water scarcity problem in China. The motivation of this study is to provide a better understanding of how reducing irrigation subsidies impacts farming sectors and rural households. We apply a Computable General Equilibrium model to simulate the irrigation water and irrigation subsidy in 16 provinces. The results show that reducing irrigation has great potential for resolving the water scarcity problem in China, especially for the provinces with high subsidy levels such as Guangdong, Shandong, and Jilin. The declines in farming outputs are significant, and then their producer prices and imports increase. Rural households suffer serious losses in food consumption, particularly for those in Jilin, Guangdong, and Shandong. As for policy recommendation, improving the mobility of cropland should be given greater attention for promoting water conservation, and improving the mobility of agricultural labor could mitigate the losses in the farming outputs and in the food consumption for rural households in most provinces. Reduction in irrigation subsidy as a policy option should be adopted gradually, and then increasing the water demand elasticity should be taken into account when the irrigation water price is close to the full-cost recovery level.
Keyword16 provinces Computable General Equilibrium model Factor mobility Farming sectors Provincial water savings Reducing irrigation subsidy Rural households
DOI10.2166/wp.2017.052
WOS KeywordGENERAL EQUILIBRIUM-ANALYSIS ; WATER PRICING POLICY ; NORTHERN CHINA ; USE EFFICIENCY ; INSTITUTIONAL REFORM ; ECONOMIC-IMPACT ; FOOD SECURITY ; RIVER-BASIN ; MANAGEMENT ; SCARCITY
Indexed BySCI
Language英语
Funding ProjectNational Natural Science Foundation of China[41271547] ; National Natural Science Foundation of China[41501604] ; National Natural Science Foundation of China[41271546] ; China Postdoctoral Science Foundation[2015M571109]
Funding OrganizationNational Natural Science Foundation of China ; China Postdoctoral Science Foundation
WOS Research AreaWater Resources
WOS SubjectWater Resources
WOS IDWOS:000401815400002
PublisherIWA PUBLISHING
Citation statistics
Document Type期刊论文
Identifierhttp://ir.igsnrr.ac.cn/handle/311030/64465
Collection中国科学院地理科学与资源研究所
Corresponding AuthorZhang, Chao
Affiliation1.Chinese Acad Sci, Inst Geog Sci & Nat Resources Res, 11A,Datun Rd, Beijing 100101, Peoples R China
2.Univ Chinese Acad Sci, 11A Datun Rd, Beijing 100101, Peoples R China
Recommended Citation
GB/T 7714
Zhong, Shuai,Shen, Lei,Liu, Litao,et al. Impact analysis of reducing multi-provincial irrigation subsidies in China: a policy simulation based on a CGE model[J]. WATER POLICY,2017,19(2):216-232.
APA Zhong, Shuai,Shen, Lei,Liu, Litao,Zhang, Chao,&Shen, Ming.(2017).Impact analysis of reducing multi-provincial irrigation subsidies in China: a policy simulation based on a CGE model.WATER POLICY,19(2),216-232.
MLA Zhong, Shuai,et al."Impact analysis of reducing multi-provincial irrigation subsidies in China: a policy simulation based on a CGE model".WATER POLICY 19.2(2017):216-232.
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