Technical and allocative efficiency of irrigation water use in the Guanzhong Plain, China

Jianjun Tang, Henk Folmer, Jianhong Xue

Research output: Contribution to journalArticle

27 Citations (Scopus)

Abstract

Due to increasing water scarcity, accelerating industrialization and urbanization, efficiency of irrigation water use in Northern China needs urgent improvement. Based on a sample of 347 wheat growers in the Guanzhong Plain, this paper simultaneously estimates a production function, and its corresponding first-order conditions for cost minimization, to analyze efficiency of irrigation water use. The main findings are that average technical, allocative, and overall economic efficiency are 0.35, 0.86 and 0.80, respectively. In a second stage analysis, we find that farmers’ perception of water scarcity, water price and irrigation infrastructure increase irrigation water allocative efficiency, while land fragmentation decreases it. We also show that farmers’ income loss due to higher water prices can be offset by increasing irrigation water use efficiency.
Original languageEnglish
Pages (from-to)43-52
Number of pages10
JournalFood Policy
Volume50
Early online date14 Nov 2014
DOIs
Publication statusPublished - Jan 2015

Fingerprint

allocative efficiency
technical efficiency
Resource Allocation
irrigation
irrigation water
water use
China
water
efficiency
Water
water shortages
farmers
production functions
industrialization
urbanization
infrastructure
water use efficiency
growers
income
farmer

Keywords

  • Irrigation water
  • Technical efficiency
  • Allocative efficiency
  • Economic efficiency
  • Perception of water scarcity
  • Structural equation modeling

Cite this

Tang, Jianjun ; Folmer, Henk ; Xue, Jianhong. / Technical and allocative efficiency of irrigation water use in the Guanzhong Plain, China. In: Food Policy. 2015 ; Vol. 50. pp. 43-52.
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Technical and allocative efficiency of irrigation water use in the Guanzhong Plain, China. / Tang, Jianjun; Folmer, Henk; Xue, Jianhong.

In: Food Policy, Vol. 50, 01.2015, p. 43-52.

Research output: Contribution to journalArticle

TY - JOUR

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AU - Tang, Jianjun

AU - Folmer, Henk

AU - Xue, Jianhong

PY - 2015/1

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N2 - Due to increasing water scarcity, accelerating industrialization and urbanization, efficiency of irrigation water use in Northern China needs urgent improvement. Based on a sample of 347 wheat growers in the Guanzhong Plain, this paper simultaneously estimates a production function, and its corresponding first-order conditions for cost minimization, to analyze efficiency of irrigation water use. The main findings are that average technical, allocative, and overall economic efficiency are 0.35, 0.86 and 0.80, respectively. In a second stage analysis, we find that farmers’ perception of water scarcity, water price and irrigation infrastructure increase irrigation water allocative efficiency, while land fragmentation decreases it. We also show that farmers’ income loss due to higher water prices can be offset by increasing irrigation water use efficiency.

AB - Due to increasing water scarcity, accelerating industrialization and urbanization, efficiency of irrigation water use in Northern China needs urgent improvement. Based on a sample of 347 wheat growers in the Guanzhong Plain, this paper simultaneously estimates a production function, and its corresponding first-order conditions for cost minimization, to analyze efficiency of irrigation water use. The main findings are that average technical, allocative, and overall economic efficiency are 0.35, 0.86 and 0.80, respectively. In a second stage analysis, we find that farmers’ perception of water scarcity, water price and irrigation infrastructure increase irrigation water allocative efficiency, while land fragmentation decreases it. We also show that farmers’ income loss due to higher water prices can be offset by increasing irrigation water use efficiency.

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KW - Economic efficiency

KW - Perception of water scarcity

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