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Economic impacts on farm households due to water reallocation in China's Chaobai watershed

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  • Zhou, Yuan
  • Zhang, Yili
  • Abbaspour, Karim C.
  • Mosler, Hans-Joachim
  • Yang, Hong

Abstract

Our study area in the Chaobai watershed, upstream of Miyun Reservoir, has been undergoing agricultural water transfers to downstream municipal uses in Beijing. We examine the impacts of water reallocation on crop production and farmers' income and discuss issues relating to current compensation mechanisms. We use data from a survey of 349 farm households and their farm plots in the upper Chaobai watershed within Hebei province. Water reallocation from upstream to downstream areas has reduced agricultural water supply and the area irrigated. Regression results show that in plots deprived of irrigation, maize yields decrease by 21% and crop revenues decline by 32%. On average, losing irrigation on one hectare of cultivated land reduces net crop income by 2422 yuan. We examine compensation arrangements and social equity for the major policies implemented in the region and we identify gaps between current compensation levels and farmers' income and production losses. The current compensation received by farmers is generally lower than the losses incurred due to reduced irrigation. A more appropriate compensation mechanism is called for in future water transfers.

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  • Zhou, Yuan & Zhang, Yili & Abbaspour, Karim C. & Mosler, Hans-Joachim & Yang, Hong, 2009. "Economic impacts on farm households due to water reallocation in China's Chaobai watershed," Agricultural Water Management, Elsevier, vol. 96(5), pages 883-891, May.
    • Handle: RePEc:eee:agiwat:v:96:y:2009:i:5:p:883-891
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    2. Z. Whitman & T. Wilson & E. Seville & J. Vargo & J. Stevenson & H. Kachali & J. Cole, 2013. "Rural organizational impacts, mitigation strategies, and resilience to the 2010 Darfield earthquake, New Zealand," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 69(3), pages 1849-1875, December.
    3. Hao Li & Michael T Bennett & Xuemei Jiang & Kebin Zhang & Xiaohui Yang, 2017. "Rural Household Preferences for Active Participation in “Payment for Ecosystem Service” Programs: A Case in the Miyun Reservoir Catchment, China," PLOS ONE, Public Library of Science, vol. 12(1), pages 1-21, January.
    4. Carlos E. Carpio, & Octavio A. Ramirez, & Tullaya Boonsaeng, 2011. "Potential for Tradable Water Allocation and Rights in Jordan," Land Economics, University of Wisconsin Press, vol. 87(4), pages 595-609.
    5. Wenyong Wu & Suchuang Di & Qianheng Chen & Shengli Yang & Xingyao Pan & Honglu Liu, 2013. "The Compensation Mechanism and Water Quality Impacts of Agriculture-Urban Water Transfers: A Case Study in China’s Chaobai Watershed," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(1), pages 187-197, January.
    6. Lu, Shibao & Lu, Wenjing & Shao, Wei & Xue, Yangang & Taghizadeh-Hesary, Farhad, 2021. "The transboundary ecological compensation construction based on pollution rights: Ways to keep the natural resources sustained," Resources Policy, Elsevier, vol. 74(C).
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