The impact of integrated agricultural water pricing reform on farmers' income in China

Guiliang Tian, Xuan Wu, Qiuya Zhao, Jiawen Li and Mengqiu Zhu

Agricultural Water Management, 2024, vol. 299, issue C

Abstract: Given its status as the largest water-using sector, it remains pivotal to enhance the water usage efficiency within the agricultural sector to safeguard water resources. The main goal of the Integrated Agricultural Water Pricing Reform (IAWPR) is to encourage water conservation and foster sustainable agricultural development. Nonetheless, achieving sustainable progress in agriculture necessitates a dual focus: not only on the sustainable exploitation of resources but also on upholding the welfare of the population. The impact of the policy on farmers' welfare is not straightforward and requires scientific verification. To this end, the study focuses on the new relationship between IAWPR and farmers' income, exploring its underlying mechanism to broaden the economic benefits of IAWPR. In addition, combining multi-phase Difference-in-Differences (DID) and biennial Malmquist-Luenberger (BML) productivity index overcomes the limitations of traditional measurement methods. The results indicate that the IAWPR has a significant positive impact on farmers, leading to a 31.9% increase in income, and the impact is even more pronounced in the non-farm sector. Furthermore, the IAWPR primarily operates through enhancing agricultural green total factor productivity (AGTFP), where technological change (TC) serves as the principal driving factor of improvements in agricultural efficiency.

Keywords: IAWPR; Multi-period DID; Agricultural green total factor productivity; Farm household income (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378377424002373
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:agiwat:v:299:y:2024:i:c:s0378377424002373

DOI: 10.1016/j.agwat.2024.108902

Access Statistics for this article

Agricultural Water Management is currently edited by B.E. Clothier, W. Dierickx, J. Oster and D. Wichelns

More articles in Agricultural Water Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().