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The shadow prices and demand elasticities of agricultural water in China: A StoNED-based analysis

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  • Shen, Xiaobo
  • Lin, Boqiang

Abstract

Based on stochastic nonparametric envelopment of data, this paper estimates the shadow prices of agricultural water and the technical efficiencies, using an input-output data of 30 provincial units in Mainland China from 2002 to 2012. The results show that the average shadow price estimates for agricultural water range between 2.57 yuan/m3 and 3.88 yuan/m3; the estimated price elasticity of agricultural water is 0.12, and that improving technical efficiencies of the agricultural sector has a significant effect on the water demand. That means the prospect of reducing the amount of agricultural water depends on the improvement of technical efficiency and the spread of water-saving irrigation techniques.

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  • Shen, Xiaobo & Lin, Boqiang, 2017. "The shadow prices and demand elasticities of agricultural water in China: A StoNED-based analysis," Resources, Conservation & Recycling, Elsevier, vol. 127(C), pages 21-28.
    • Handle: RePEc:eee:recore:v:127:y:2017:i:c:p:21-28
    DOI: 10.1016/j.resconrec.2017.08.010
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    2. Alexander Arévalo S & Víctor Giménez G & Diego Prior J, 2022. "Análisis de eficiencia en educación: una aplicación del método StoNED," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 92(2), pages 45-91, October.
    3. Chebil, Ali & Soula, Rania & Souissi, Asma & Bennouna, Bechir, 2022. "Efficiency, valuation, and pricing of irrigation water in northeastern Tunisia," Agricultural Water Management, Elsevier, vol. 266(C).
    4. Zihan Guo & Ni Wang & Xiaolian Mao & Xinyue Ke & Shaojiang Luo & Long Yu, 2022. "Benefit Analysis of Economic and Social Water Supply in Xi’an Based on the Emergy Method," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
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    6. Liu, Fangmei & Li, Li & Ye, Bin & Qin, Quande, 2023. "A novel stochastic semi-parametric frontier-based three-stage DEA window model to evaluate China's industrial green economic efficiency," Energy Economics, Elsevier, vol. 119(C).

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