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Methods for Approximating the Shadow Price of Water in China

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  • Xiuli Liu
  • Xikang Chen
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    Abstract

    Using the input-output tables for water conservancy for the nine major river basins in China in combination with linear programming techniques, we calculate the shadow prices of industrial water and productive water in the nine river basins. After the results are subjected to factor analysis, the shadow prices of industrial water and productive water are obtained for each Chinese province in 1999. Then, nonlinear models for calculating the shadow price of water in specific counties are given. They appear to be valuable tools for setting reasonable water prices and establishing a market for water in China.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/09535310802075349
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Economic Systems Research.

    Volume (Year): 20 (2008)
    Issue (Month): 2 ()
    Pages: 173-185

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    Handle: RePEc:taf:ecsysr:v:20:y:2008:i:2:p:173-185

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    Related research

    Keywords: Water resources; shadow price; input-output model; linear programming; nonlinear models;

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