Water diversion and agricultural production: Evidence from China

Water diversion can alleviate water shortages caused by the uneven distribution of water resources. China’s South-to-North Water Diversion Project (SNWD) is the largest water diversion project worldwide. Based on the prefecture-level data of China’s Huang-Huai-Hai Plain from 2000 to 2020, this study...

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Main Authors: Rui YANG, Hang XU
Format: Article
Language:English
Published: Elsevier 2023-04-01
Series:Journal of Integrative Agriculture
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2095311923000606
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author Rui YANG
Hang XU
author_facet Rui YANG
Hang XU
author_sort Rui YANG
collection DOAJ
description Water diversion can alleviate water shortages caused by the uneven distribution of water resources. China’s South-to-North Water Diversion Project (SNWD) is the largest water diversion project worldwide. Based on the prefecture-level data of China’s Huang-Huai-Hai Plain from 2000 to 2020, this study employs an empirical strategy of Differences-in-Differences (DID) to analyze the impact of SNWD on agricultural production. The results show that SNWD has significantly increased agricultural production, measured by the agricultural value added. The estimated results of the benchmark model remain robust when the contemporaneous policy is addressed, an alternative outcome is used, subsamples are estimated, and alternative estimation techniques are employed. This study argues that the potential impact mechanism may be that SNWD significantly increases the acreage for cash crops but reduces that for grain crops. Heterogeneity analysis shows that in prefectures with high temperature or land potential, SNWD’s impact on agricultural value added is relatively low. In contrast, in areas with prolonged sunshine or high slopes, SNWD’s impact on agricultural value added is relatively large. Given the low added value of grain crops, the government should consider strengthening food security by subsidizing water supply to sustain grain production.
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spelling doaj.art-1b283b6ed491445cb5afc816f8141d4d2023-04-14T04:19:02ZengElsevierJournal of Integrative Agriculture2095-31192023-04-0122412441257Water diversion and agricultural production: Evidence from ChinaRui YANG0Hang XU1College of Humanities and Development Studies, China Agricultural University, Beijing 100193, P.R.ChinaCollege of Economics and Management, Northwest A&F University, Yangling 712100, P.R.China; Correspondence XU hangWater diversion can alleviate water shortages caused by the uneven distribution of water resources. China’s South-to-North Water Diversion Project (SNWD) is the largest water diversion project worldwide. Based on the prefecture-level data of China’s Huang-Huai-Hai Plain from 2000 to 2020, this study employs an empirical strategy of Differences-in-Differences (DID) to analyze the impact of SNWD on agricultural production. The results show that SNWD has significantly increased agricultural production, measured by the agricultural value added. The estimated results of the benchmark model remain robust when the contemporaneous policy is addressed, an alternative outcome is used, subsamples are estimated, and alternative estimation techniques are employed. This study argues that the potential impact mechanism may be that SNWD significantly increases the acreage for cash crops but reduces that for grain crops. Heterogeneity analysis shows that in prefectures with high temperature or land potential, SNWD’s impact on agricultural value added is relatively low. In contrast, in areas with prolonged sunshine or high slopes, SNWD’s impact on agricultural value added is relatively large. Given the low added value of grain crops, the government should consider strengthening food security by subsidizing water supply to sustain grain production.http://www.sciencedirect.com/science/article/pii/S2095311923000606South-to-North Water Diversion Projectagricultural productionDifferences-in-DifferencesChina
spellingShingle Rui YANG
Hang XU
Water diversion and agricultural production: Evidence from China
Journal of Integrative Agriculture
South-to-North Water Diversion Project
agricultural production
Differences-in-Differences
China
title Water diversion and agricultural production: Evidence from China
title_full Water diversion and agricultural production: Evidence from China
title_fullStr Water diversion and agricultural production: Evidence from China
title_full_unstemmed Water diversion and agricultural production: Evidence from China
title_short Water diversion and agricultural production: Evidence from China
title_sort water diversion and agricultural production evidence from china
topic South-to-North Water Diversion Project
agricultural production
Differences-in-Differences
China
url http://www.sciencedirect.com/science/article/pii/S2095311923000606
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AT hangxu waterdiversionandagriculturalproductionevidencefromchina