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Methods for Approximating the Shadow Price of Water in China

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  • Xiuli Liu
  • Xikang Chen

Abstract

Using the input-output tables for water conservancy for the nine major river basins in China in combination with linear programming techniques, we calculate the shadow prices of industrial water and productive water in the nine river basins. After the results are subjected to factor analysis, the shadow prices of industrial water and productive water are obtained for each Chinese province in 1999. Then, nonlinear models for calculating the shadow price of water in specific counties are given. They appear to be valuable tools for setting reasonable water prices and establishing a market for water in China.

Suggested Citation

  • Xiuli Liu & Xikang Chen, 2008. "Methods for Approximating the Shadow Price of Water in China," Economic Systems Research, Taylor & Francis Journals, vol. 20(2), pages 173-185.
  • Handle: RePEc:taf:ecsysr:v:20:y:2008:i:2:p:173-185 DOI: 10.1080/09535310802075349
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    References listed on IDEAS

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    Cited by:

    1. Lilian Albornoz & Hilda Guerrero García Rojas & Daniel Adrián, 2014. "La vulnerabilidad de la economía yucateca ante limitaciones en la disponibilidad de agua subterránea. Un enfoque de insumo producto," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 77-104, November.

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