Effects of Water Priority Policy on Farmers' Decision on Acreage Allocation in Northwest China
This article analyses the impact of a water allocation priority policy for a specific crop on farmers’ acreage allocation to different crops. To accomplish this, a system of crop acreage demands conditional on output yields, prices of variable inputs and levels of quasi-fixed inputs is estimated. The analysis based on a two-year farm household panel data from an arid region in northwest China. The results show that the water policy change results in a lower elasticity of land demand not only for Atlantic potatoes (i.e. the preferential crop), but also for the other crops. Acreage allocation to grains differs from other crops due to their use within the farm household. Moreover, the estimated elasticities of quasi-fixed inputs reveal that whereas the area of cash crops and Atlantic potatoes increases with increased use of own labour before the policy change, it does so only for cash crops after the policy change. With respect to own and exchanged labour Atlantic potatoes behave like grains and regular potatoes after the policy change.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.iaae-agecon.org/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ags:iaae12:125216. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.