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Analysis on the Influencing Factors of Farmers’ Cognition on the Function of Agricultural Water Price—Taking Hexi Corridor as an Example

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  • Wei Qu

    (Institute of Advanced Studies in Humanities and Social Sciences, Beijing Normal University at Zhuhai, Zhuhai 519087, China)

  • Jing Yan

    (Center for Innovation and Development Studies, Beijing Normal University at Zhuhai, Zhuhai 519087, China)

  • Yanmei Tan

    (Center for Innovation and Development Studies, Beijing Normal University at Zhuhai, Zhuhai 519087, China)

  • Qin Tu

    (Center for Innovation and Development Studies, Beijing Normal University at Zhuhai, Zhuhai 519087, China)

Abstract

Analyzing the farmer’s behavior and the water-saving incentive mechanism is of great significance to the implementation of the explicit subsidy policy of agricultural water prices. This paper introduces the concept of loss aversion from behavioral economics and conducts a theoretical analysis of the incentive mechanism of agricultural water prices to verify the hypotheses by using survey data from the three inland river basins in the Hexi Corridor, Northwest China. The results show that when farmers believe that their water-saving potential is relatively large, the loss aversion of farmers has a significantly positive impact on water-saving incentives under an explicit agricultural water price subsidy. In addition, irrigation canal evaluation and regional differences have negative and positive influences, respectively. Based on this, suggestions are made to actively promote the implementation of explicit subsidy of agricultural water prices in order to save irrigation water.

Suggested Citation

  • Wei Qu & Jing Yan & Yanmei Tan & Qin Tu, 2021. "Analysis on the Influencing Factors of Farmers’ Cognition on the Function of Agricultural Water Price—Taking Hexi Corridor as an Example," Sustainability, MDPI, vol. 13(9), pages 1-14, May.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:9:p:5197-:d:549771
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    References listed on IDEAS

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    Cited by:

    1. Xuerong Li, 2022. "Can Collecting Water Fees Really Promote Agricultural Water-Saving? Evidence from Seasonal Water Shortage Areas in South China," Sustainability, MDPI, vol. 14(19), pages 1-17, October.
    2. Feng Li & Xuewan Du & Pengchao Zhang & Huimin Li & Xiaoxia Fei, 2023. "Co-Evolutionary Mechanism of Stakeholders’ Strategies in Comprehensive Agricultural Water Price Reform: The View of Evolutionary Game Based on Prospect Theory," Sustainability, MDPI, vol. 15(15), pages 1-31, August.

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