IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v230y2025ics0921800925000187.html
   My bibliography  Save this article

The command paradox: Unraveling the impact of command-and-control water conservation policies on water-use technical efficiency

Author

Listed:
  • Xin, Jing
  • Zhou, Hui
  • Yang, Hongqiang
  • Sheng, Jichuan

Abstract

The intensifying global water scarcity poses a significant threat to sustainability, compelling nations to implement diverse strategies focusing on improving water conservation. Despite the urgency of this issue, limited research has been conducted on the nexus between command-and-control water-saving policies and technical efficiency. This study develops a theoretical framework to assess the impact of such policies, using China's Most Stringent Water Management System (ISWMS) as an example. It argues that not all water conservation measures enhance technical efficiency, and specific command-and-control policies may hinder it. The negative effects are most pronounced in regions with inadequate infrastructure and high urbanization. Moreover, these policies may worsen efficiency in monsoon zones by improving water accessibility. Ultimately, this study emphasizes that command-and-control policies are not universally effective and often require integration with other measures to achieve desired outcomes. By offering a theoretical foundation and practical insights, this research expands the policy discourse on water-use technical efficiency and provides valuable guidance for the global formulation of command-and-control water-saving initiatives.

Suggested Citation

  • Xin, Jing & Zhou, Hui & Yang, Hongqiang & Sheng, Jichuan, 2025. "The command paradox: Unraveling the impact of command-and-control water conservation policies on water-use technical efficiency," Ecological Economics, Elsevier, vol. 230(C).
    • Handle: RePEc:eee:ecolec:v:230:y:2025:i:c:s0921800925000187
    DOI: 10.1016/j.ecolecon.2025.108535
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800925000187
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecolecon.2025.108535?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chunyang He & Zhifeng Liu & Jianguo Wu & Xinhao Pan & Zihang Fang & Jingwei Li & Brett A. Bryan, 2021. "Future global urban water scarcity and potential solutions," Nature Communications, Nature, vol. 12(1), pages 1-11, December.
    2. Simon Freyaldenhoven & Christian Hansen & Jesse M. Shapiro, 2019. "Pre-event Trends in the Panel Event-Study Design," American Economic Review, American Economic Association, vol. 109(9), pages 3307-3338, September.
    3. Shao, Jun & Wang, Lianghu, 2023. "Can new-type urbanization improve the green total factor energy efficiency? Evidence from China," Energy, Elsevier, vol. 262(PB).
    4. Li Pan & Xudong Chen & Lu Zhao & Anran Xiao, 2019. "Does Information Asymmetry Impact Sub-Regions’ Cooperation of Regional Water Resource Allocation?," IJERPH, MDPI, vol. 16(21), pages 1-16, November.
    5. Cai, Xiqian & Lu, Yi & Wu, Mingqin & Yu, Linhui, 2016. "Does environmental regulation drive away inbound foreign direct investment? Evidence from a quasi-natural experiment in China," Journal of Development Economics, Elsevier, vol. 123(C), pages 73-85.
    6. Sheng, Jichuan & Qiu, Wenge, 2023. "Inter-basin water transfer policies and water-use technical efficiency: China's South-North Water Transfer Project," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    7. Johan Rockström & Mariana Mazzucato & Lauren Seaby Andersen & Simon Felix Fahrländer & Dieter Gerten, 2023. "Why we need a new economics of water as a common good," Nature, Nature, vol. 615(7954), pages 794-797, March.
    8. Anthony J. Venables, 2016. "Using Natural Resources for Development: Why Has It Proven So Difficult?," Journal of Economic Perspectives, American Economic Association, vol. 30(1), pages 161-184, Winter.
    9. Ather Hassan Dar & Somesh Kumar Mathur & Sila Mishra, 2021. "The Efficiency of Indian Banks: A DEA, Malmquist and SFA Analysis with Bad Output," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 19(4), pages 653-701, December.
    10. Huang, Qiuqiong & Wang, Jinxia & Li, Yumin, 2017. "Do water saving technologies save water? Empirical evidence from North China," Journal of Environmental Economics and Management, Elsevier, vol. 82(C), pages 1-16.
    11. Min Ge & Fengping Wu & Xiaoping Chen, 2018. "Using Multiple Discriminant Analysis for the Assignment of Initial Water Entitlements at River Basin-Level under the Strictest Water Resources Management System Constraints in China," Sustainability, MDPI, vol. 10(12), pages 1-17, November.
    12. Pereira, Helga & Marques, Rui Cunha, 2017. "An analytical review of irrigation efficiency measured using deterministic and stochastic models," Agricultural Water Management, Elsevier, vol. 184(C), pages 28-35.
    13. Luyanga, Shadrick & Miller, Richard & Stage, Jesper, 2006. "Index number analysis of Namibian water intensity," Ecological Economics, Elsevier, vol. 57(3), pages 374-381, May.
    14. Danelon, André Felipe & Augusto, Fernanda Gaudio & Spolador, Humberto Francisco Silva, 2021. "Water resource quality effects on water treatment costs: An analysis for the Brazilian case," Ecological Economics, Elsevier, vol. 188(C).
    15. Zarezadeh, Mahboubeh & Delavar, Majid & Morid, Saeed & Abbasi, Hamid, 2023. "Evaluating the effectiveness of macro-level water-saving policies based on water footprint sustainability indicators," Agricultural Water Management, Elsevier, vol. 282(C).
    16. Allen Blackman & Zhengyan Li & Antung A. Liu, 2018. "Efficacy of Command-and-Control and Market-Based Environmental Regulation in Developing Countries," Annual Review of Resource Economics, Annual Reviews, vol. 10(1), pages 381-404, October.
    17. Alberto Abadie, 2005. "Semiparametric Difference-in-Differences Estimators," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 1-19.
    18. Zhang, Qi & Yu, Zhi & Kong, Dongmin, 2019. "The real effect of legal institutions: Environmental courts and firm environmental protection expenditure," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    19. D’Inverno, Giovanna & Carosi, Laura & Romano, Giulia & Guerrini, Andrea, 2018. "Water pollution in wastewater treatment plants: An efficiency analysis with undesirable output," European Journal of Operational Research, Elsevier, vol. 269(1), pages 24-34.
    20. Sumit Agarwal & Eduardo Araral & Mingxuan Fan & Yu Qin & Huanhuan Zheng, 2022. "Water conservation through plumbing and nudging," Nature Human Behaviour, Nature, vol. 6(6), pages 858-867, June.
    21. Deng, Xi-Ping & Shan, Lun & Zhang, Heping & Turner, Neil C., 2006. "Improving agricultural water use efficiency in arid and semiarid areas of China," Agricultural Water Management, Elsevier, vol. 80(1-3), pages 23-40, February.
    22. Long, Kaisheng & Pijanowski, Bryan C., 2017. "Is there a relationship between water scarcity and water use efficiency in China? A national decadal assessment across spatial scales," Land Use Policy, Elsevier, vol. 69(C), pages 502-511.
    23. Stefano Clò & Tommaso Reggiani & Sabrina Ruberto, 2024. "Consumption Feedback and Water Saving: A Field Intervention Evaluation in the Metropolitan Area of Milan," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(9), pages 2259-2308, September.
    24. Rui Shu & Xinchun Cao & Mengyang Wu, 2021. "Clarifying Regional Water Scarcity in Agriculture based on the Theory of Blue, Green and Grey Water Footprints," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 35(3), pages 1101-1118, February.
    25. Kampas, Athanasios & Petsakos, Athanasios & Rozakis, Stelios, 2012. "Price induced irrigation water saving: Unraveling conflicts and synergies between European agricultural and water policies for a Greek Water District," Agricultural Systems, Elsevier, vol. 113(C), pages 28-38.
    26. Tang, Chang & Xu, Yuanyuan & Hao, Yu & Wu, Haitao & Xue, Yan, 2021. "What is the role of telecommunications infrastructure construction in green technology innovation? A firm-level analysis for China," Energy Economics, Elsevier, vol. 103(C).
    27. Chong Huang & Kedong Yin & Zhe Liu & Tonggang Cao, 2021. "Spatial and Temporal Differences in the Green Efficiency of Water Resources in the Yangtze River Economic Belt and Their Influencing Factors," IJERPH, MDPI, vol. 18(6), pages 1-18, March.
    28. Liqun Sun & Ji Chen & Qinglan Li & Dian Huang, 2020. "Dramatic uneven urbanization of large cities throughout the world in recent decades," Nature Communications, Nature, vol. 11(1), pages 1-9, December.
    29. Guan, Dabo & Hubacek, Klaus, 2007. "Assessment of regional trade and virtual water flows in China," Ecological Economics, Elsevier, vol. 61(1), pages 159-170, February.
    30. Cheng, Zhonghua & Wang, Lan, 2023. "Can new urbanization improve urban total-factor energy efficiency in China?," Energy, Elsevier, vol. 266(C).
    31. Bwambale, Erion & Abagale, Felix K. & Anornu, Geophrey K., 2022. "Smart irrigation monitoring and control strategies for improving water use efficiency in precision agriculture: A review," Agricultural Water Management, Elsevier, vol. 260(C).
    32. Kerstin Damerau & Katharina Waha & Mario Herrero, 2019. "The impact of nutrient-rich food choices on agricultural water-use efficiency," Nature Sustainability, Nature, vol. 2(3), pages 233-241, March.
    33. Vasilaky, Kathryn & Harou, Aurélie & Alfredo, Katherine & Kapur, Ishita, 2023. "What works for water conservation? Evidence from a field experiment in India," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    34. Lans Bovenberg, A. & Smulders, Sjak, 1995. "Environmental quality and pollution-augmenting technological change in a two-sector endogenous growth model," Journal of Public Economics, Elsevier, vol. 57(3), pages 369-391, July.
    35. G. Karagiannis & V. Tzouvelekas & A. Xepapadeas, 2003. "Measuring Irrigation Water Efficiency with a Stochastic Production Frontier," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(1), pages 57-72, September.
    36. Nancy Qian, 2008. "Missing Women and the Price of Tea in China: The Effect of Sex-Specific Earnings on Sex Imbalance," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(3), pages 1251-1285.
    37. Pan, Junyu & Peng, Jie & Yang, Xiaodong & Xuan, Siyuan, 2023. "Does water rights trading promote resources utilisation efficiency and green growth? Evidence from China's resources trading policy," Resources Policy, Elsevier, vol. 86(PB).
    38. Simmons, Peter & Weiserbs, Daniel, 1979. "Translog Flexible Functional Forms and Associated Demand Systems," American Economic Review, American Economic Association, vol. 69(5), pages 892-901, December.
    39. Hui Guo & Xiangdong Chen & Jiahong Liu & Hongjiang Zhang & Jesper Svensson, 2020. "Joint analysis of water rights trading and water-saving management contracts in China," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 36(4), pages 716-737, July.
    40. Mark A. Adams & Thomas N. Buckley & Dan Binkley & Mathias Neumann & Tarryn L. Turnbull, 2021. "CO2, nitrogen deposition and a discontinuous climate response drive water use efficiency in global forests," Nature Communications, Nature, vol. 12(1), pages 1-9, December.
    41. Allan, Tony, 1999. "Productive efficiency and allocative efficiency: why better water management may not solve the problem," Agricultural Water Management, Elsevier, vol. 40(1), pages 71-75, March.
    42. Alexander James, 2015. "US State Fiscal Policy and Natural Resources," American Economic Journal: Economic Policy, American Economic Association, vol. 7(3), pages 238-257, August.
    43. Fare, Rolf & Knox Lovell, C. A., 1978. "Measuring the technical efficiency of production," Journal of Economic Theory, Elsevier, vol. 19(1), pages 150-162, October.
    44. Macarena Dagnino & Frank Ward, 2012. "Economics of Agricultural Water Conservation: Empirical Analysis and Policy Implications," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 28(4), pages 577-600.
    45. Liberalesso, Tiago & Oliveira Cruz, Carlos & Matos Silva, Cristina & Manso, Maria, 2020. "Green infrastructure and public policies: An international review of green roofs and green walls incentives," Land Use Policy, Elsevier, vol. 96(C).
    46. Julio Berbel & Julia Martin-Ortega & Pascual Mesa, 2011. "A Cost-Effectiveness Analysis of Water-Saving Measures for the Water Framework Directive: the Case of the Guadalquivir River Basin in Southern Spain," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(2), pages 623-640, January.
    47. Ward, Frank A. & Pulido-Velázquez, Manuel, 2008. "Efficiency, equity, and sustainability in a water quantity-quality optimization model in the Rio Grande basin," Ecological Economics, Elsevier, vol. 66(1), pages 23-37, May.
    48. Henry, Michael & Kneller, Richard & Milner, Chris, 2009. "Trade, technology transfer and national efficiency in developing countries," European Economic Review, Elsevier, vol. 53(2), pages 237-254, February.
    49. Summers, Lawrence H, 1989. "Some Simple Economics of Mandated Benefits," American Economic Review, American Economic Association, vol. 79(2), pages 177-183, May.
    50. Zheng, Shiming & Yao, Rongrong & Zou, Ke, 2022. "Provincial environmental inequality in China: Measurement, influence, and policy instrument choice," Ecological Economics, Elsevier, vol. 200(C).
    51. Kumar, Ronald Ravinesh & Kumar, Radika, 2013. "Effects of energy consumption on per worker output: A study of Kenya and South Africa," Energy Policy, Elsevier, vol. 62(C), pages 1187-1193.
    52. Ting Ma & Siao Sun & Guangtao Fu & Jim W. Hall & Yong Ni & Lihuan He & Jiawei Yi & Na Zhao & Yunyan Du & Tao Pei & Weiming Cheng & Ci Song & Chuanglin Fang & Chenghu Zhou, 2020. "Pollution exacerbates China’s water scarcity and its regional inequality," Nature Communications, Nature, vol. 11(1), pages 1-9, December.
    53. Ji Qi & Xin Tang & Xican Xi, 2021. "The Size Distribution of Firms and Industrial Water Pollution: A Quantitative Analysis of China," American Economic Journal: Macroeconomics, American Economic Association, vol. 13(1), pages 151-183, January.
    54. Zaveri, Esha & Wrenn, Douglas H. & Fisher-Vanden, Karen, 2016. "Water in the Balance: The Impact of Water Infrastructure on Agricultural Adaptation to Rainfall Shocks in India," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236216, Agricultural and Applied Economics Association.
    55. Giannoccaro, Giacomo & Roselli, Luigi & Sardaro, Ruggiero & de Gennaro, Bernardo C., 2022. "Design of an incentive-based tool for effective water saving policy in agriculture," Agricultural Water Management, Elsevier, vol. 272(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sheng, Jichuan & Qiu, Wenge, 2023. "Inter-basin water transfer policies and water-use technical efficiency: China's South-North Water Transfer Project," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    2. Dandan Zhu & Xinping Tao & Meibo Huang, 2023. "Law Reinforcement, Production Pattern and Enterprise Environmental Performance: Evidence from Environmental Courts in China," Sustainability, MDPI, vol. 15(5), pages 1-20, March.
    3. Liu, Duan & Yu, Nizhou & Wan, Hong, 2022. "Does water rights trading affect corporate investment? The role of resource allocation and risk mitigation channels," Economic Modelling, Elsevier, vol. 117(C).
    4. Dong, Yan & Tian, Jinhuan & Wen, Qiang, 2022. "Environmental regulation and outward foreign direct investment: Evidence from China," China Economic Review, Elsevier, vol. 76(C).
    5. Sheng, Jichuan & Qiu, Wenge, 2022. "Water-use technical efficiency and income: Evidence from China's South-North Water Transfer Project," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    6. Ai, Hongshan & Tan, Xiaoqing & Zhou, Shengwen & Zhou, Yuhan & Xing, Hongye, 2023. "The impact of environmental regulation on carbon emissions: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1067-1079.
    7. Hang, Jing & Wang, Miaojun & Zhou, Mohan, 2025. "Productivity implications of inefficient environmental regulation: Evidence from China," China Economic Review, Elsevier, vol. 90(C).
    8. Chebil, Ali & Frija, Iheb & Bahri, Walid, 2014. "Irrigation water efficiency in wheat production in Chbika (Tunisia):Parametric versus Nonparametric Comparisons," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 15(01), pages 1-14.
    9. Hu, Hui & Qi, Shaozhou & Chen, Yuanzhi, 2023. "Using green technology for a better tomorrow: How enterprises and government utilize the carbon trading system and incentive policies," China Economic Review, Elsevier, vol. 78(C).
    10. Badeeb, Ramez Abubakr & Lean, Hooi Hooi & Clark, Jeremy, 2017. "The evolution of the natural resource curse thesis: A critical literature survey," Resources Policy, Elsevier, vol. 51(C), pages 123-134.
    11. Arne Henningsen & Guy Low & David Wuepper & Tobias Dalhaus & Hugo Storm & Dagim Belay & Stefan Hirsch, 2024. "Estimating Causal Effects with Observational Data: Guidelines for Agricultural and Applied Economists," IFRO Working Paper 2024/03, University of Copenhagen, Department of Food and Resource Economics.
    12. Guo, Shu & Zhang, ZhongXiang, 2023. "Green credit policy and total factor productivity: Evidence from Chinese listed companies," Energy Economics, Elsevier, vol. 128(C).
    13. Zhang, Kaixia & Li, Weibing, 2024. "Understanding the puzzle of polluting companies' social responsibility," China Economic Review, Elsevier, vol. 84(C).
    14. Bopp, Carlos & Jara-Rojas, Roberto & Bravo-Ureta, Boris & Engler, Alejandra, 2022. "Irrigation water use, shadow values and productivity: Evidence from stochastic production frontiers in vineyards," Agricultural Water Management, Elsevier, vol. 271(C).
    15. Zhice Cheng & Xinyuan Chen & Huwei Wen, 2022. "How Does Environmental Protection Tax Affect Corporate Environmental Investment? Evidence from Chinese Listed Enterprises," Sustainability, MDPI, vol. 14(5), pages 1-22, March.
    16. Du, Kerui & Liu, Xueyue & Zhao, Cheng, 2023. "Environmental regulation mitigates energy rebound effect," Energy Economics, Elsevier, vol. 125(C).
    17. Sarra Ben Slimane, 2024. "The Impact of Resource Revenue on Non-Resource Tax Revenue in Oil-Exporting Countries: Evidence from Nonlinear Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 272-280, January.
    18. Aibo Gong, 2021. "Bounds for Treatment Effects in the Presence of Anticipatory Behavior," Papers 2111.06573, arXiv.org, revised Dec 2022.
    19. Pengyang Zhang & Lewen Zhang & Dandan Han & Tingting Wang & He Zhu & Yongtao Chen, 2023. "Coupled and Coordinated Development of the Tourism Industry and Urbanization in Marginal and Less Developed Regions—Taking the Mountainous Border Areas of Western Yunnan as a Case Study," Land, MDPI, vol. 12(3), pages 1-24, March.
    20. Wang, Ke-Liang & Sun, Ting-Ting & Xu, Ru-Yu & Miao, Zhuang & Cheng, Yun-He, 2022. "How does internet development promote urban green innovation efficiency? Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 184(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:230:y:2025:i:c:s0921800925000187. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.