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Valuing the environmental externalities of oasis farming in Left Banner, Alxa, China

Author

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  • Wei, Yongping
  • White, Robert
  • Hu, Kelin
  • Willett, Ian

Abstract

Agriculture's environmental footprint is expanding and one of its most critical impacts in China is the over-exploitation of surface water and groundwater from aquifers. This study investigated an approach for estimating the physical dimensions of the environmental externalities from a maize cropping system in oasis farming of the arid north-west of China, and the monetary valuation of these environmental externalities based on integrated process-based biophysical and economic models. The simulation results show that current farming practices cause 7854 Yuan/ha of groundwater recharge cost, 7696 Yuan/ha of water treatment cost, and 91 Yuan/ha of N2O mitigation cost. These costs lead to a social benefit-cost ratio of only 0.55, although the farmers' benefit-cost ratio was 1.85. A combination of adoption of recommended best management practices by farmers, and an increase in the water price to 1.1 Yuan/m3 could maintain both the social and farmers' benefit-cost ratios above 1, but the costs of recharging groundwater were large in all cases.

Suggested Citation

  • Wei, Yongping & White, Robert & Hu, Kelin & Willett, Ian, 2010. "Valuing the environmental externalities of oasis farming in Left Banner, Alxa, China," Ecological Economics, Elsevier, vol. 69(11), pages 2151-2157, September.
    • Handle: RePEc:eee:ecolec:v:69:y:2010:i:11:p:2151-2157
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    References listed on IDEAS

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    3. Wei, Yongping & Chen, Deli & Hu, Kelin & Willett, Ian R. & Langford, John, 2009. "Policy incentives for reducing nitrate leaching from intensive agriculture in desert oases of Alxa, Inner Mongolia, China," Agricultural Water Management, Elsevier, vol. 96(7), pages 1114-1119, July.
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    1. Li, Guifang & Shi, Minjun & Zhou, Dingyang, 2021. "How much will farmers be compensated for water reallocation from agricultural water to the local ecological sector on the edge of an oasis in the Heihe River Basin?," Agricultural Water Management, Elsevier, vol. 249(C).
    2. Lu, Zhixiang & Wei, Yongping & Xiao, Honglang & Zou, Songbing & Ren, Juan & Lyle, Clive, 2015. "Trade-offs between midstream agricultural production and downstream ecological sustainability in the Heihe River basin in the past half century," Agricultural Water Management, Elsevier, vol. 152(C), pages 233-242.
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