Testing the Effects of Water-Saving Technologies Adapted to Drought: Empirical Evidence from the Huang-Huai-Hai Region in China

Chunxiao Song, Yue Rong, Ruifeng Liu, Les Oxley and Hengyun Ma ()
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Chunxiao Song: College of Economics and Management, Henan Agricultural University, Zhengzhou 450046, China
Yue Rong: College of Economics and Management, Henan Agricultural University, Zhengzhou 450046, China
Ruifeng Liu: College of Economics and Management, Henan Agricultural University, Zhengzhou 450046, China
Les Oxley: School of Accounting, Economics and Finance, University of Waikato, Hamilton 3240, New Zealand
Hengyun Ma: College of Economics and Management, Henan Agricultural University, Zhengzhou 450046, China

Land, 2022, vol. 11, issue 12, 1-22

Abstract: The aggravation of extreme weather events has dramatically increased the risk of severe water shortages and seriously threatened agricultural production. The Huang-Huai-Hai region, an important agricultural production region in China, is subject to a severe water shortage and is often hit by drought. As a result, water-saving technologies (WSTs) have been implemented. It remains unclear how effectively these WSTs can reduce crop yield loss, crop yield variation, and the loss of net crop income caused by water scarcity. Therefore, this paper aimed to analyze the role of WSTs in response to drought by establishing a multi-objective expected utility function based on 988 farmers across the Huang-Huai-Hai region. Econometric analysis employing an endogenous switching regression model showed that using WSTs can significantly reduce crop yield loss and net income loss caused by drought. Adopting household-based WSTs or community-based water-saving technology generates even greater positive effects on crop yield and farmers’ net income. Therefore, the government should promote farmers’ adoption of more advanced WSTs by increasing subsidies and strengthening policy support.

Keywords: water-saving technologies; drought; crop yield variance; net crop income; Huang-Huai-Hai region (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2022
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