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Impacts of Water Management System on Agricultural Production and Household Welfare within Urbanization of China: a Computable General Equilibrium Analysis

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  • Zhong, Shuai
  • Okiyama, Mitsuru
  • Tokunaga, Suminori

Abstract

This paper simulates urbanization under two different water management systems: i) the water parallel pricing system and ii) the water pricing system. The purpose is to discover which water management system is better for agricultural production and household welfare. The main conclusion is that the water pricing system is better than the water parallel system because it will increase the welfare, income and consumption of both urban and rural households. However, under the water pricing system, more water will be reallocated from agricultural sectors to the industrial and service sectors, especially to households; therefore, agricultural outputs will suffer greater losses.

Suggested Citation

  • Zhong, Shuai & Okiyama, Mitsuru & Tokunaga, Suminori, 2015. "Impacts of Water Management System on Agricultural Production and Household Welfare within Urbanization of China: a Computable General Equilibrium Analysis," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 17, pages 1-6.
    • Handle: RePEc:ags:jpjjre:242117
    DOI: 10.22004/ag.econ.242117
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    References listed on IDEAS

    as
    1. Dirk Willenbockel, 2006. "Structural Effects of a Real Exchange Rate Revaluation in China: a CGE Assessment," EcoMod2006 272100102, EcoMod.
    2. Calzadilla, Alvaro & Rehdanz, Katrin & Tol, Richard S.J., 2011. "The GTAP-W model: Accounting for water use in agriculture," Kiel Working Papers 1745, Kiel Institute for the World Economy (IfW Kiel).
    3. Denis Nitikin & Chunli Shen & Qian Wang & Heng-fu Zou, 2012. "Water Service Delivery Reform in China: Safeguarding the Interests of the Poor," Annals of Economics and Finance, Society for AEF, vol. 13(2), pages 463-487, November.
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    Crop Production/Industries;

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