Competition and monopoly of Chinese rural groundwater market：structure and determinants

China is facing severe problem of water scarcity.Agricultural sector,the main consumer of water resource,has remarkably changed its institutions on water resource deployment,due to heavy environmental pressure.As a new and spontaneous institution,groundwater market has developed rapidly in northern China,and has impacts on waterusing behaviors and benefits of farmers.Using household survey data from Hebei and Henan in 2007,this paper attempts to pin down the development and operating of groundwater market in rural China.We focus on the monopoly and competition in the market.Empirical analysis reveals that Chinese farmers are trying to make rational decision when they compete with others in groundwater market.In general,monopoly is not fierce in Chinese rural groundwater market,with great variations among different villages and even different tubewells within one village.Tubewell costs,regulation and the density of tubewells are the main determinants that affect monopoly level of groundwater market.To make water market benefit more and more farmers of low income,corresponding policies are needed to modify its development in the future.     

Hydro-economic river basin modelling: The application of a holistic surface-groundwater model to assess opportunity costs of water use in Spain

Combined hydro-economic models of river basins are fundamental tools for assessing management and infrastructure strategies to improve the economic efficiency of water use in a context of competition over scarce water resources. Integrated hydro-economic models have to be capable to properly reproduce the physical behavior of the system, with a realistic representation of the different surface and groundwater resources, including their interaction, and the spatial and temporal variability of resource availability. On the other hand, such models must incorporate the value of water for different urban, agricultural and industrial uses and users. Economic values for water use are defined according to the marginal residual value of water for production (for agricultural and industrial uses) or the aggregated willingness-to-pay (WTP) for urban supply and other final water uses. In this paper, we present a systematic approach to estimate the marginal economic value of surface and groundwater resources at different locations within a complex water resources system. Based on a holistic conjunctive optimization model applied to the Adra river system in Spain we asses the total and marginal opportunity costs of capacity and operation constraints, including the opportunity cost of imposing environmental constraints on water use as foreseen in future Spanish water policy following the implementation of the European Water Framework Directive. The resulting opportunity costs provide important information to water managers about economic inefficiencies of current water allocation policy or infrastructure design, and about the resource opportunity costs to be considered in the design of efficient pricing policies in regions with water scarcity issues.     

地下水灌溉系统产权制度的创新与理论解释——小型水利工程的实证研究

水资源管理制度和政策越来越被认为是解决日益严重的水资源短缺问题的重要手段。本项研究的主要目的是分析我国地下水灌溉系统产权制度的创新过程和诱导因素 ,为国家引导和制定合理的水资源管理政策提供理论和实证依据。本项研究采用了定量研究的方法 ,建立了地下水灌溉系统产权制度创新模型 ,分析数据来源于作者对河北省 3县 3 0个村的实地调查。研究结果表明 ,80年代以来 ,以河北省为代表的地下水灌溉系统的产权制度逐渐从集体产权向非集体产权演变。影响地下水灌溉系统产权制度创新的主要因素是水资源开发利用程度、生存环境、社区经济条件、社区人力资本、市场发育程度、水利财政政策和水利信贷政策等因素。本项研究还对如何引导产权制度创新更快更有效的发展提出了一些政策建议。     

Management of non-timber forestry products extraction: Local institutions, ecological knowledge and market structure in South-Eastern Zimbabwe

Common-pool resources (CPRs), such as forests, water resources and rangelands, provide a wide variety of economic benefits to forest-fringe dwellers in semi-arid areas of southern Africa. However, the public nature and competition involved in the use of these goods, and weak enforcement of institutional arrangements governing their use may lead to resource degradation. Using survey data from four communities in south-eastern Zimbabwe for 2008 and 2009, this paper examines the extent to which forest degradation is driven by existing common property management regimes resource and user characteristics, ecological knowledge and marketing structure. A Principal Component Analysis indicates that the existence of agreed-upon rules governing usage (including costs of usage), enforcement of these rules, sanctions for rule violations that are proportional to the severity of rule violation, social homogeneity, and strong beliefs in ancestral spirits were the most important attributes determining effectiveness of local institutions in the management of CPRs. Empirical results from a regression analysis showed that resource scarcity, market integration, and infrastructural development lead to greater resource degradation, while livestock income, high ecological knowledge, older households, and effective local institutional management of the commons reduce resource degradation. The results suggest that there is need for adaptive local management systems that enhance ecological knowledge of users and regulates market structure to favour long-term livelihood securities of these forest-fringe communities.     

Effects of instantaneous groundwater availability on irrigated agriculture and implications for aquifer management

Groundwater is an important input for agricultural production in many parts of the world. Aquifer depletion has been shown to affect the rate that groundwater can be extracted from an aquifer. In this paper, we develop an analytical framework that accounts explicitly for the effects of limited instantaneous groundwater extraction rate (well capacity) on a producer's irrigation decisions. We show that limited well capacities can affect the producer’s groundwater use and profit. We draw three important insights from these findings. First, we demonstrate that the price elasticity of demand for groundwater is higher for lower well capacities. Second, farmers’ irrigation decisions are non-monotonic with respect to well capacity and climate conditions. Under a drier climate, producers with greater well capacities increase their groundwater use, and producers with lower well capacities reduce their water use. Third, through numerical analysis, we show that considering spatial heterogeneity in well capacities is important for estimating the cost-effectiveness and distributional impacts of groundwater management policies. Our results shed new light on the importance of extraction capacity for groundwater management policies and the potential impacts of climate change on agricultural production.     

An economic model of waterlogging and salinization in arid regions

Waterlogging and salinization arise in arid areas largely because two essential resources, irrigation water and the assimilative capacity of unconfined aquifers, are not priced or allocated correctly to reflect scarcity values and opportunity costs. Farm-level and project-level models of crop production are examined to identify policies that will encourage farmers to consider opportunity costs and the effects of irrigation and leaching on depth to regional water tables. Appropriate policies include volumetric water pricing, water markets, tradable water allotments, adjustments in area-based cost recovery programs, and incentives for farmers to use irrigation methods that reduce deep percolation. Implementing appropriate versions of these policies may reduce the rate of increase in waterlogged and saline areas.     

The social acceptability and valuation of recycled water in Crete: A study of consumers' and farmers' attitudes

This paper investigates the Willingness to Use (WTU) and Willingness to Pay (WTP) for recycled water in agriculture. We report results from surveys of farmers and consumers on the island of Crete, Greece. Crete is suffering from an increasingly severe water shortage coupled with declining groundwater supplies, therefore the wider use of recycled water is an important policy priority. We have investigated WTU and WTP for two crops with two different levels of water treatment. The mean WTP for 1 cm³ of recycled water was 0.15€ for the irrigation of both olive trees and tomato crops, namely 55% of the fresh water price. The mean WTP for olive oil produced from olive trees irrigated with recycled water was 2.65€, namely 88% of its current market price. We have found that both attitudinal factors, such as environmental awareness and economic factors, such as freshwater prices and incomes, are significant in explaining the WTU and WTP for recycled water and products produced using it, but that important differences exist between farmers and consumers.     

Groundwater balance and conservation under different water pricing and agricultural policy scenarios: A case study of the Hamadan-Bahar plain

Government subsidies for agricultural activities in recent decades have encouraged farmers of Hamadan-Bahar plain to extend the number of wells and irrigated farms, with no consideration of groundwater resource conservation. As a result, the level of the groundwater table has decreased continuously in this area, threatening the life of groundwater aquifer. The objective of the study is to analyze the impacts of irrigation water pricing and agricultural policy scenarios on aquifer conservation by considering the dynamic relations between aquifer groundwater balance and the agriculture sector. For this purpose a combination of simulation and optimization techniques is considered in a dynamic framework. Firstly, dynamic treatments of groundwater and the main factors affecting the balance of studied aquifer are simulated. Then, optimization behaviour of agriculture sector related to farmers' decision-making processes is defined on the time horizon. Thereafter all of the equations are used simultaneously by a non-linear dynamic programming method, which maximize present value of gross margins of agriculture sector subject to groundwater constrains and other input limitations. The analysis of the results indicates that water pricing by itself can considerably reduce the agricultural demand for aquifer groundwater in the Hamadan-Bahar plain.     

Basin impacts of irrigation water conservation policy

Climate change, uncertain future water supplies, growing population, and increased water demands continue to raise the importance of finding cost-effective water conservation measures. Irrigated agriculture is the world's largest water user, so governments, donor organizations, water suppliers, and farmers continue to look for measures that would produce more crop per drop. Despite the importance of promoting water conservation in agriculture, little work has been done that integrates hydrologic, economic, institutional, and policy dimensions of water conservation. This paper presents an integrated basin scale analysis of water conservation subsidies for irrigated agriculture. A dynamic, nonlinear programming model is developed and applied for the Upper Rio Grande Basin of Colorado, New Mexico, and Texas, USA. Several potential public subsidies of drip irrigation are analyzed for their economic and hydrologic impacts at both the farm and basin levels. Results indicate that water conservation subsidies for drip irrigation produce several effects. These include greater on-farm implementation of water-conserving technology, less water applied to crops, more water consumed by crops, increased farm income, greater crop production, more land irrigated, and increased total water-related economic benefits for the basin. Findings provide a framework for designing and implementing water conservation policies for irrigated agriculture.     

金融可得性与农村家庭创业 ——基于CHARLS数据的实证研究

本文选取CHARLS调查数据中806个农户样本对金融可得性与农户创业选择的相关性进行实证检验。结果显示,中国农村家庭的创业选择行为与其家庭金融资源可得性、拥有的资产规模呈现正相关关系。这表明,对我国的农村家庭而言,金融约束的存在一定程度上制约了其非农领域的创业活动,提高家庭金融可得性对于提高创业概率有显著的正向边际效应。此外,农村社区层面金融资源可得性对于社区内部家庭创业水平也存在重要影响。因此,未来促进农村地区家庭创业水平提高的政策重点是进一步降低农村金融准入门槛,增加乡镇尤其是农村社区层面的正规金融供给。     

FARM PROFITABILITY AND BUREC WATER SUBSIDIES: AN LP LOOK AT A REGION

Most studies of irrigation water subsidies focus on farmers' "ability-to-pay" for irrigation-related construction costs without questioning the methods used to subsidize these costs. This article shows how BUREC water subsidies could be eliminated by increasing federal water and power rates on long-term irrigation contracts. The welfare effects of this "desubsidization" are examined for California's San Joaquin Valley, which uses federal power for groundwater pumping and the conveyance of surface water. A linear programming model provides estimates of the change in farm profitability from imposing full-cost federal water and power rates. The desubsidization has a disproportionate impact on growers of water intensive crops while benefiting non-agricultural power users and the U.S. Treasury. This points to the conclusion that charging full-cost rates would redistribute $4.58 million of profit-income per year without significant regional impacts on growers.     

我国农户参与灌溉管理的产权制度保障

灌区农民用水者协会的管理模式能够提升农民管理灌溉系统的集体行动空间,从而有效解决灌区水资源利用所出现的恶性循环,但由于权利转移的不充分,当前我国灌区农民用水者协会的进一步发展面临着众多的制约。     

Water Security and Irrigation Investment: Evidence from a Field Experiment in Rural Pakistan

This study examines the relationship between water security features and irrigation investment using data from a field survey with a choice experiment conducted in rural Pakistan. Our results generally support Besley’s framework on the link between property right and investment incentive with an application to irrigation, although not all aspects of water security features can significantly affect farmers’ investment in irrigation. Investment increases significantly with groundwater share, but there is insufficient evidence to support that farmers’ investment is significantly and positively affected by surface water reliability. Farmers who own land or who are located further down the watercourse tend to invest more than their peers do. Existing conditions on surface water reliability significantly affect this relationship. Overall, groundwater use dominates the decision-making of investment and the role of surface water source in securing irrigation water is relatively weak from a farmer’s perspective.     

Stopping the Drain: Third-party Responses to California's Water Market

Concerns over potential adverse effects of a state-sponsored water market have prompted many rural California counties to adopt ordinances restricting groundwater exports since the early 1990 s. Results from panel regressions that rely on original water market and institutional data indicate that these local restrictions have significantly reduced water exports. The optimality of this policy is assessed. In the presence of a water market, export restrictions appear as a low-cost management alternative to common property within source regions. The substantial statewide benefits of a market weigh in favor of broader public support to more comprehensive, non-discriminatory groundwater management initiatives. (JEL Q25 , Q21 )     

Agricultural impacts on water quality and implications for virtual water trading decisions

Research on the flow of virtual water associated with agricultural crop production and trade has focussed almost entirely on water quantity. It is pertinent to consider and quantify the opportunity costs in terms of reduced water quality associated with crop production. This paper investigates the impacts of water quality on virtual water trading by creating a proxy for water quality impacts by calculating the amount of water required to dilute nonpoint-source agrochemical inputs to relevant water quality guideline values. The quantity of water required for dilution of five agrochemicals (two nutrients; nitrogen and phosphorus and three insecticides; azinphos-methyl, chlorpyrifos and endosulfan) was estimated for five crops in South Africa (maize, wheat, sugar cane, citrus and cotton) and compared to consumption of irrigation water (blue water) and rainfall (green water) for the same crops. Results indicate that the volume of water required for dilution is similar to the total sum of green and blue water required for crop production, but significantly greater than blue water use (irrigation use). For all crops phosphorus losses require greater amounts of water for dilution than for nitrogen, while pesticides result in the greatest water quality use. Estimates of water quality use are based on assumptions for a number of input variables (i.e. fertilizer application rates, percentage loss of agrochemicals from cropped areas). A Monte Carlo analysis (5000 iterations) was run to randomly select input variables from within defined ranges. Water quality use was calculated and expressed as a factor of blue water use. For all crops the average factor indicated that the volume of water required for dilution of all agrochemicals was greater than that required for irrigation. The results of this study clearly indicate that the impacts of agriculture on water quality need to be considered in virtual water trading scenarios. The incorporation of a method to predict impacts on water quality provides a comparative tool which generates a more holistic frame of reference for decision making with regard to impacts on the water resource and virtual water trading.     

Water users associations and irrigation water productivity in northern China

Traditional irrigation water management systems in China are increasingly replaced by user-based, participatory management through water users associations (WUAs) with the purpose to promote, economically and ecologically beneficial, water savings and increase farm incomes. Existing research shows that significant differences exist in the institutional setup of WUAs in China, and that WUAs have not been universally successful in saving water and improving farm incomes. This paper aims to examine the underlying causes of differences in WUA performance by analyzing the impact of WUA characteristics on the productivity of irrigation water. Explanatory variables in our analysis are derived from Agrawal's user-based resource governance framework. Applying a random intercept regression model to data collected among 21 WUAs and 315 households in Minle County in northern China, we find that group characteristics, particularly group size and number of water users groups, and the existing pressure on available water resources are important factors in water productivity. Resource characteristics, i.e. resource size and degree of overlap between the WUA boundaries and natural boundaries, do not significantly affect water productivity in our research area.     

Property rights and groundwater management in the High Plains Aquifer

Groundwater is an important natural resource that needs to be managed dynamically. Ideally, institutions governing property rights to the groundwater of low-recharge aquifers should not discourage or disincentivize groundwater users from dynamic management. We develop an empirical model to examine whether agricultural groundwater users faced with prior appropriation property rights to groundwater in western Kansas exhibit dynamic, forward-looking behavior consistent with dynamic management. We find that although farmers are allotted a time-invariant maximum amount of groundwater that they can extract each year, they still behave in a manner consistent with dynamic management. Their groundwater extraction decisions are not significantly affected by the quantity they are authorized to extract, but are instead affected by expected future crop prices, expected future energy prices, and groundwater extraction by neighbors. Our results provide evidence that farmers manage their groundwater resource dynamically, even if their property rights do not necessarily encourage or incentivize them to do so.     

Wetland restoration,collective action and the role of water management institutions

Over the past 50 years, large areas of agricultural land have been drained and put into intensive agricultural production. Increasing attention is now being paid to the issue of restoring wetland areas and promoting environmental benefits. Collective action is important for wetland restoration, both because of the physical interactions among landholders and because of the cost saving and enhanced environmental benefit that can be achieved at a larger scale. Policy needs to be geared towards facilitating co-operation among farmers if environmental schemes are to be effective in enabling wetland restoration. Internal Drainage Boards have been primarily involved with securing of land drainage for local landholders. They now have a formal responsibility to further nature conservation but could take a more proactive role in promoting wetland restoration. They have good information on local water management options and are well placed to co-ordinate actions for restoration. Agri-environment policy could be redirected in order to promote collective action for wetland restoration.     

State-led or market-led green revolution? Role of private irrigation investment vis-a-vis local government programs in West Bengal's farm productivity growth

We estimate the role of private investments in irrigation in farm productivity growth in West Bengal, India between 1982 and 95. Using a state-wide farm panel, we find that falling groundwater costs generated significant growth in value added per acre for farms. These resulted from investments in minor irrigation which was stimulated by tenancy registration programs implemented by local governments. This helps account for substantial spillover effects of the tenancy reform on non-tenant farms noted in an earlier study. Hence the West Bengal Green Revolution of the 1980s benefited from complementarity between private investment incentives and state-led institutional reforms.     

Improving Human Wellbeing and Ecosystem Health on BC’s Coast: The Challenge Posed by Historic Resource Extraction

Synopsis Haida Gwaii and the Great Bear Rainforest (GBR) comprise the world’s largest intact coastal temperate rainforest. British Columbia has encouraged industrial logging of this region. As a result, ecological values have been eroded and natural capital has been drawn down. The logging industry has provided few local economic benefits. Colonization and industrial resource extraction have contributed to high levels of social distress in First Nations communities. Since 2001, logging companies, environmental organizations, and the provincial and First Nations governments have collaborated in developing an Ecosystem Based Management (EBM) approach. EBM is intended to maintain ecosystem integrity and improve human wellbeing. In 2006, the province began implementing EBM by setting aside one third of the GBR’s land base from logging and by proposing transitional EBM requirements. This paper draws on stumpage and forest cover data to analyze natural capital depletion. The analysis indicates that much of the GBR’s natural capital, as represented by timber, has been depleted. Industrial logging was already on the decline before the decision was taken to implement an EBM approach. Expectations for improved socio-economic outcomes under EBM may not be realistic given the constraints implied by past logging. If EBM performance is measured using conventional economic indicators without accounting for past depletion, it risks being found to have failed the goal of improving human wellbeing. This would create pressure to relax EBM provisions to allow more logging, an outcome that would fail both ecosystems and human communities in the long term. If much reduced extraction levels are to support local human wellbeing, a greater share of economic benefits must be retained locally.