Irrigation water pricing based on the ELES-WPTI model in the Yinda-Jihuang project of China

Water pricing is the key to maximizing the economic and social benefits of the water transfer project. In this study, we propose the extended linear expenditure system-water price tolerance index (ELES-WPTI) model that combines the ELES model and the WPTI method for water pricing. Firstly, the ELES...

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Main Authors: He Chen, Ting Wang, Guohua Fang, Huaxiang He, Xinmin Xie, Mingwan Yin, Ping Xiao
Format: Article
Language:English
Published: IWA Publishing 2023-05-01
Series:Water Policy
Subjects:
Online Access:http://wpol.iwaponline.com/content/25/5/509
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author He Chen
Ting Wang
Guohua Fang
Huaxiang He
Xinmin Xie
Mingwan Yin
Ping Xiao
author_facet He Chen
Ting Wang
Guohua Fang
Huaxiang He
Xinmin Xie
Mingwan Yin
Ping Xiao
author_sort He Chen
collection DOAJ
description Water pricing is the key to maximizing the economic and social benefits of the water transfer project. In this study, we propose the extended linear expenditure system-water price tolerance index (ELES-WPTI) model that combines the ELES model and the WPTI method for water pricing. Firstly, the ELES model is used to estimate the price elasticity of water demand and the basic demand for farmers of different income levels. Secondly, the WPTI method is used to simulate and analyze the affordability of farmers of different income levels for agricultural water under the dynamic change of water price standards. Finally, the ELES-WPTI model is applied to the Yinda-Jihuang (YJ) Project, China, to determine the appropriate agricultural water price. The results reveal that the farmers in the DH district have slightly higher affordability of water price than that in HL District. As water consumption should account for less than 15% of the total production cost and 10% of the net income, the affordable water price is determined to be 237 $/hm² in the DH district and 205 $/hm² in the HL district, respectively. HIGHLIGHTS A new method extended linear expenditure system-water price tolerance index (ELES-WPTI) for water pricing is presented.; The study simulated and analyzed the farmers’ affordability of different income levels for agricultural water.; The ELES-WPTI model is first applied to the Yinda-Jihuang (YJ) Project, China.;
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spelling doaj.art-6a0803f8557c4061b66a49a8df013cd22023-06-06T13:28:55ZengIWA PublishingWater Policy1366-70171996-97592023-05-0125550952210.2166/wp.2023.004004Irrigation water pricing based on the ELES-WPTI model in the Yinda-Jihuang project of ChinaHe Chen0Ting Wang1Guohua Fang2Huaxiang He3Xinmin Xie4Mingwan Yin5Ping Xiao6 Hohai University, Nanjing 210024, China Department of Water Resources, China Institute of Water Resources and Hydropower Research, Beijing 100038, China Hohai University, Nanjing 210024, China Department of Water Resources, China Institute of Water Resources and Hydropower Research, Beijing 100038, China Department of Water Resources, China Institute of Water Resources and Hydropower Research, Beijing 100038, China Department of Water Resources, China Institute of Water Resources and Hydropower Research, Beijing 100038, China Department of Water Resources, China Institute of Water Resources and Hydropower Research, Beijing 100038, China Water pricing is the key to maximizing the economic and social benefits of the water transfer project. In this study, we propose the extended linear expenditure system-water price tolerance index (ELES-WPTI) model that combines the ELES model and the WPTI method for water pricing. Firstly, the ELES model is used to estimate the price elasticity of water demand and the basic demand for farmers of different income levels. Secondly, the WPTI method is used to simulate and analyze the affordability of farmers of different income levels for agricultural water under the dynamic change of water price standards. Finally, the ELES-WPTI model is applied to the Yinda-Jihuang (YJ) Project, China, to determine the appropriate agricultural water price. The results reveal that the farmers in the DH district have slightly higher affordability of water price than that in HL District. As water consumption should account for less than 15% of the total production cost and 10% of the net income, the affordable water price is determined to be 237 $/hm² in the DH district and 205 $/hm² in the HL district, respectively. HIGHLIGHTS A new method extended linear expenditure system-water price tolerance index (ELES-WPTI) for water pricing is presented.; The study simulated and analyzed the farmers’ affordability of different income levels for agricultural water.; The ELES-WPTI model is first applied to the Yinda-Jihuang (YJ) Project, China.;http://wpol.iwaponline.com/content/25/5/509agricultural irrigationeles modelwater price tolerancewater pricingyinda-jihuang project
spellingShingle He Chen
Ting Wang
Guohua Fang
Huaxiang He
Xinmin Xie
Mingwan Yin
Ping Xiao
Irrigation water pricing based on the ELES-WPTI model in the Yinda-Jihuang project of China
Water Policy
agricultural irrigation
eles model
water price tolerance
water pricing
yinda-jihuang project
title Irrigation water pricing based on the ELES-WPTI model in the Yinda-Jihuang project of China
title_full Irrigation water pricing based on the ELES-WPTI model in the Yinda-Jihuang project of China
title_fullStr Irrigation water pricing based on the ELES-WPTI model in the Yinda-Jihuang project of China
title_full_unstemmed Irrigation water pricing based on the ELES-WPTI model in the Yinda-Jihuang project of China
title_short Irrigation water pricing based on the ELES-WPTI model in the Yinda-Jihuang project of China
title_sort irrigation water pricing based on the eles wpti model in the yinda jihuang project of china
topic agricultural irrigation
eles model
water price tolerance
water pricing
yinda-jihuang project
url http://wpol.iwaponline.com/content/25/5/509
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