Alleviating water scarcity and poverty through water rights trading pilot policy: A quasi-natural experiment based approach

Resource regulation and green innovation:Evidence from China's water rights trading policy

Green innovation is the pivotal part connected with achieving urban sustainable development. Resource regulation, represented by water rights trading policy (WRTP), is playing an increasingly important role in supporting urban green innovation (UGI). Therefore, this paper uses the WRTP conducted in 2014 in China as a quasi-natural experiment to evaluate the net effect of resource regulation on green innovation by the identification methods of difference-in-differences (DID) model. The results show that: (1) WRTP promotes UGI significantly, and this finding holds after a series of robustness tests, (2) the influencing mechanisms are mainly by optimizing industrial structure and enhancing the efficiency of resource allocation and information exchange efficiency and the promoting function is moderated by urban competitiveness and population agglomeration, (3) the promotion effects are greater in cities with higher level of government intervention, environmental pollution, water using quantity and local economy, (4) WRTP has the spatial spillover effect on UGI. These findings provide insights into sustainable development of water resources, management of water trading market, urban green innovation and sustainable economic development.

Assessing the option water-saving willingness of irrigation areas considering farmers' risk tolerance

Water option trading could facilitate water conservation in irrigation areas to achieve optimal allocation of agricultural water resources. However, the risk associated with water-saving decisions increases due to the uncertainties of tradeable water and water-saving benefits, which makes farmers in the irrigation area with heterogeneous risk tolerances exhibit varied option water-saving willingness (OWSW) in response to the water option contract. Thus, this article provides a novel framework for prior assessing the OWSW in the irrigated area that considers farmers' heterogeneous risk tolerance and proposes the optimal contractual water demand to stimulate the OWSW. First, a multiobjective optimal allocation model for cropping water is constructed to predict tradeable water, and then risk trust, risk-return perception and reference are integrated into water-saving return analysis for proposing a willingness calculation model involving forecast information. Finally, the influence of heterogeneous risk tolerance on farmers' water-saving path choices and the irrigation area's OWSW is analyzed with three sets of comparative data from 2014 to 2021. Results indicate that the intensity and stability of OWSW in water-scarce irrigation areas increase as farmers' risk tolerance rises, but the enhancement utility exhibits a diminishing marginal trend. When both prediction accuracy and farmers' risk tolerance are low, contracts with relatively adventurous and differentiated water demands are more likely to stimulate OWSW. This study provides insights into activating water options trading and stimulating water conservation in agriculture from a risk management perspective.

Water rights reform and water-saving irrigation: evidence from China

As a market-based water resource management, the water rights reform (WRR) will allocate water rights to water users and allow water users to trade water rights, which can realize the reallocation across water users. In this context, the adoption of water-saving irrigation (WSI) is an important technical form to adapt to the reform. Based on this, this paper studies the impacts of the WRR on WSI using the difference-in-differences (DID) strategy. The results show that the WRR could increase the land area for WSI by an average of 13.63%. The WRR could promote the expansion of high-efficiency irrigation mainly because the WRR could promote the expansion of spray and drip irrigation areas, and micro-irrigation land areas, which are high-efficiency water-saving irrigation technologies. In addition, the WRR also could improve agricultural production by increasing agricultural water productivity and planting area (including the sown area of grain crops and cash crops), but the WRR does not reduce agricultural water extraction. Therefore, the WRR could increase agricultural production without increasing agricultural water extraction.

Research on Water Rights Allocation of Coordinated Development on Water–Ecology–Energy–Food

Water rights trading is an important way to solve the problem of water shortage by market mechanism. The allocation of water rights among ecological water, energy water, and grain planting water are the basis of the regional water rights trade. In this paper, the concept of coordinated development of water–ecology–energy–food is proposed. We build a water rights allocation model with fairness, efficiency, and coordinated development as the goal, to achieve water security for various industries. Taking Yinchuan city as an example, the results showed that compared with the current water rights the water rights of life increased by 1.07%, the water rights of ecology increased by 1.85%, the water rights of energy industry decreased by 1.09%, the water rights of food planting decreased by 3.27%, the water rights of other agriculture increased by 0.83%, and the water rights of the general industry increased by 0.65%. After the allocation of water rights, the cooperativity of water–ecology–energy–food increased by 7.56%, and the total value of water resources in various industries increased by 2.31 × 108 CNY. A new water rights allocation model is developed in this paper, which can provide a reference for the allocation of water rights among regional industries.

Can the Adjustment of China's Grain Purchase and Storage Policy Improve Its Green Productivity?

While the sustainability of grain production has been extensively studied, there have been few studies focusing on the impact of grain policy adjustment on its sustainable production, and the quantitative relationship between these two aspects and the internal mechanism is not completely clear. The main objective of this paper was to explore the impact of grain purchase and storage policy (GPSP) adjustment on its green productivity by expounding the evolution logic and influence mechanism of GPSP. Therefore, taking maize production as an example, this paper constructs the analysis framework of the evolution logic and influence mechanism, and the super-epsilon-based measure model (Super-EBM) is adopted to measure maize green productivity (MGP) in main producing areas from 1997 to 2019, then two groups of difference-in-differences (DID) models are constructed to study the influence of the temporary purchase and storage policy (TPSP) and the producer subsidy policy (PSP) on MGP. The main conclusions include: the implementation of TPSP reduces MGP in Heilongjiang, Jilin, Liaoning and Inner Mongolia (experimental group), whereas the implementation of PSP improves MGP in these provinces is due to the difference in policy effects under the different regulatory objectives and measures; under the demonstration effect of two policies, the increase in effective irrigation and agricultural financial expenditure are important factors to improve MGP, but the backwardness of agricultural mechanization has been hindering the improvement of MGP; after the reform from TPSP to PSP, the continuous increase in production capacity hinders the improvement of MGP under the support effect, the impacts of farmers’ income and agricultural production price on MGP both shift from negative to positive under the wealth effect, and the influence of production agglomeration on MGP shifts from negative to positive under the siphon effect. The excessive implementation of GPSP has seriously affected the sustainability of grain production, thus, this study has certain practical significance and guiding value. The paper emphasizes that the effective way to achieve sustainable food production is to combine the adjustment of GPSP with improving the subsidy mechanism, enhancing the agricultural mechanization and maintaining the appropriate scale of operation.