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JOURNAL OF NATURAL RESOURCES >

2018 , Vol. 33 >Issue 7: 1116 - 1128

DOI: https://doi.org/10.31497/zrzyxb.20170668

Resource Economics

Assessing the Compensation Standard of Water-saving Irrigation Technology from the Perspective of External Benefits: Based on Choice Experiment

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  • 1. Applied Economic Research Center, College of Economics and Management, Northwest A & F University, Yangling 712100, China;
    2. School of International Business, Shaanxi Normal University, Xi’an 710119, China;

Received date: 2017-07-03

  Revised date: 2017-09-25

  Online published: 2018-07-20

Supported by

Major Research Project of National Social Science Fund of China, No. 15ZDA052

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Abstract

Reasonable compensation standard for water-saving irrigation technology can obtain a more positive response and improve policy effectiveness. In theory, the external benefits generated by water-saving irrigation technology are the basis of the compensation policy design. Taking Minqin County as an example, this paper quantified the external benefits of water-saving irrigation technology adopted by the choice experiment and random parameters Logit model, then calculated the compensation standard according to bargaining ability of the stakeholders. The results show that: 1) Both urban and rural residents of Minqin County all hope to improve the regional ecological environment by implementing water-saving irrigation technology. The annual willingness to pay of urban residents is 1 006.99 yuan if all arable land adopts high-efficiency water-saving irrigation technology in the next 10 years and the indicators restore to the best level designed in this article, and that of rural residents is 661.36 yuan. It indicates that the external benefit of technology adoption is obvious, thus the annual total external benefits is 50.96×106 yuan, around 1 052.25 yuan/hm2. 2) Accorrding to the natural environment of Minqin County and the adaptability of different technologies, if adopting drip irrigation technology, the reasonable standard should be around 789.15 yuan/hm2. Compared with the compensation standard of 150 yuan/hm2 in Gansu Province, the current water-saving irrigation technology compensation is too low to maintain farmers’ interests and lead to inadequate policy response. It is suggested that, a complete cost-benefit accounting system should be built which incorporates the external benefits to enhance the fairness of compensation policy. And a precision compensation should be implemented according to technology types and the area to increase financial fund utilization efficiency. Although this study provides a feasible way to quantify the external benefit of water-saving irrigation technology, Minqin County is one of the main sources of dust storms in China, benefits brought by its improved ecological environment for the residents outside the region (e.g., sandstorms reduction, etc.) is not included in the accounting of external benefits. Therefore, in the following study of cost-benefit analysis of water-saving irrigation technology, it is necessary to further explore the benefits of the residents outside the implementing region, so that quantitative results of external benefits can be more comprehensive.

Key words： choice experiment; compensation standard; external benefits; random parameters Logit model; water-saving irrigation technology

Cite this article

XU Tao, ZHAO Min-juan, QIAO Dan, SHI Heng-tong . Assessing the Compensation Standard of Water-saving Irrigation Technology from the Perspective of External Benefits: Based on Choice Experiment[J]. JOURNAL OF NATURAL RESOURCES, 2018 , 33(7) : 1116 -1128 . DOI: 10.31497/zrzyxb.20170668

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