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Technical and allocative efficiency of irrigation water use in the Guanzhong Plain, China

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  • Tang, Jianjun
  • Folmer, Henk
  • Xue, Jianhong

Abstract

Due to increasing water scarcity, accelerating industrialization and urbanization, efficiency of irrigation water use in Northern China needs urgent improvement. Based on a sample of 347 wheat growers in the Guanzhong Plain, this paper simultaneously estimates a production function, and its corresponding first-order conditions for cost minimization, to analyze efficiency of irrigation water use. The main findings are that average technical, allocative, and overall economic efficiency are 0.35, 0.86 and 0.80, respectively. In a second stage analysis, we find that farmers’ perception of water scarcity, water price and irrigation infrastructure increase irrigation water allocative efficiency, while land fragmentation decreases it. We also show that farmers’ income loss due to higher water prices can be offset by increasing irrigation water use efficiency.

Suggested Citation

  • Tang, Jianjun & Folmer, Henk & Xue, Jianhong, 2015. "Technical and allocative efficiency of irrigation water use in the Guanzhong Plain, China," Food Policy, Elsevier, vol. 50(C), pages 43-52.
  • Handle: RePEc:eee:jfpoli:v:50:y:2015:i:c:p:43-52
    DOI: 10.1016/j.foodpol.2014.10.008
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    References listed on IDEAS

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    1. repec:gam:jsusta:v:10:y:2018:i:2:p:568-:d:133066 is not listed on IDEAS
    2. repec:eee:appene:v:224:y:2018:i:c:p:469-480 is not listed on IDEAS
    3. Jianjun Tang & Henk Folmer, 2016. "Latent vs. Observed Variables: Analysis of Irrigation Water Efficiency Using SEM and SUR," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 173-185, February.
    4. repec:gam:jsusta:v:10:y:2018:i:5:p:1619-:d:147308 is not listed on IDEAS

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