JOURNAL OF NATURAL RESOURCES ›› 2019, Vol. 34 ›› Issue (3): 553-562.

• Resources Economics •

### Estimating economic value of irrigation water and analysis of influencing factors: A case study based on residual value method and farmers' datain Guanzhong area of Shaanxi

LIU Wei-zhe(), TANG Li, WANG Xi-qin(), WANG Jian-hao

1. School of Agricultural Economics and Rural Development, Renmin University of China, Beijing 100872, China
• Received:2018-08-24 Revised:2019-01-09 Online:2019-03-28 Published:2019-03-28

Abstract:

The economic value of irrigation water is an important basis for the pricing of irrigation water. Based on farmers' data in Shaanxi Guanzhong irrigation area, this paper applied Residual Value Method to calculate the economic value of irrigation water for wheat, corn and apple. The results show that the economic values of irrigation water for the three crops are 0.66 yuan/m3, 0.84 yuan/m3 and 3.17 yuan/m3, respectively. Taking the results as the upper limit of irrigation water price and compared with the current irrigation water price, we found that the water price increase range of wheat and corn is between 0.24-0.71 yuan/m3. The apple water price adjustment space is relatively relaxed, ranging from 2.72 to 3.04 yuan/m3. Furthermore, the analysis of factors influencing economic value of water based on quantile regression shows that the main factors are family economic level, type of crops, and whether to carry out comprehensive reform of agricultural water price project. The educational level, family economic level, farmers' subjective cognitive characteristics, and whether to carry out the comprehensive reform of agricultural water price project are positively correlated with the economic value of water, while age, non-agricultural occupations, number of non-farm labor forces in family, land quantity and water economic value are negatively correlated with it. Specifically, (1) when economic value of irrigation water is at low stage, the characteristics of farmers and families as well as the farmland dispersion have significant impact; (2) when the economic value of irrigation water is at high stage, raising farmers' water-saving consciousness and joining water users association will be able to effectively improve the economic value of irrigation water; (3) the conversion from grain into cash crops and the comprehensive reform of agricultural water prices have significant positive effects on all quantile points. This paper provides the basis for the agricultural water pricing classification in Guanzhong irrigation area, and also shows a new perspective for calculating the economic value of irrigation water.