The Effects of Volumetric Pricing Policy on Farmers’ Water Management Institutions and Their Water Use : The Case of Water User Organization in an Irrigation System in Hubei, China

This article examines the effect of water pricing policies on farmers’ water saving behaviors, using original water user group (WUG) data from a reservoir irrigation system in China. The introduction of volumetric water pricing at the group level,...

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Main Authors: Kajisa, Kei, Dong, Bin
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2015
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2015/07/24784477/effects-volumetric-pricing-policy-farmers’-water-management-institutions-water-use-case-water-user-organization-irrigation-system-hubei-china
http://hdl.handle.net/10986/22453
id okr-10986-22453
recordtype oai_dc
spelling okr-10986-224532021-04-23T14:04:08Z The Effects of Volumetric Pricing Policy on Farmers’ Water Management Institutions and Their Water Use : The Case of Water User Organization in an Irrigation System in Hubei, China Kajisa, Kei Dong, Bin LARGE RESERVOIRS WATER ALLOCATION FRESH WATER LEAD RURAL COMMUNITIES FLOW LOCAL AUTHORITIES WATER MANAGERS WATER USER DEMAND FOR WATER RAINFALL PATTERNS PUMPS WATER DEMAND CULTIVATED AREA MARGINAL COST COLLECTION SYSTEM AGRICULTURAL DEVELOPMENT SYSTEMS WATER SUPPLY WATER RESOURCE DOMESTIC WATER RESERVOIRS FIXED FEE WATER FEES PONDS IRRIGATION MANAGEMENT LAND TENURE PROVINCIAL WATER WATER APPLICATION GRAVITY WATER SOURCES DOMESTIC WATER SUPPLY PUMPING WATER MANAGEMENT IRRIGATION SYSTEMS SEEPAGE WATER PRICING STATISTICS IRRIGATION INTERNATIONAL WATER AGRICULTURAL WATER HOUSEHOLDS WATER SAVINGS HIGH WATER WATER USERS CONSERVATION ADMINISTRATIVE CAPACITY FIXED COSTS CONSTRUCTION CANAL MAINTENANCE METEOROLOGICAL STATIONS RAIN WATER USE WATER SOIL TYPES PRESSURE NATURAL RESOURCE MANAGEMENT RAINFALL ALTERNATIVE WATER SOURCES WATER SCARCITY RESEARCH FARMING IRRIGATION WATER FARMERS IRRIGATION SCHEME INDUSTRIAL USE WATER CONSERVATION WATER SOURCE WATER DISTRIBUTION NATURAL RESOURCES FOOD PRODUCTION This article examines the effect of water pricing policies on farmers’ water saving behaviors, using original water user group (WUG) data from a reservoir irrigation system in China. The introduction of volumetric water pricing at the group level, to replace area-based pricing, induces institutional change to prevent each member’s overuse of water when the volumetric price levels are moderate. Depending on the initial conditions, the multiple pathways of change lead to new institutional arrangements, with all of them contributing to water savings. However, when the price is set high enough, many farmers exit a WUG for private irrigation. This tendency is associated with an increased probability that the remaining members do not undertake institutional change and that they do not end up saving water. This may be due to the increased management difficulties among the remaining members whose fields are separated by former members who have now opted out for private irrigation across the WUG. As a result, we do not find evidence that the reservoir water is saved at high volumetric price levels. 2015-08-17T19:19:50Z 2015-08-17T19:19:50Z 2015-07 Working Paper http://documents.worldbank.org/curated/en/2015/07/24784477/effects-volumetric-pricing-policy-farmers’-water-management-institutions-water-use-case-water-user-organization-irrigation-system-hubei-china http://hdl.handle.net/10986/22453 English en_US Policy Research Working Paper;No. 7369 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific China
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic LARGE RESERVOIRS
WATER ALLOCATION
FRESH WATER
LEAD
RURAL COMMUNITIES
FLOW
LOCAL AUTHORITIES
WATER MANAGERS
WATER USER
DEMAND FOR WATER
RAINFALL PATTERNS
PUMPS
WATER DEMAND
CULTIVATED AREA
MARGINAL COST
COLLECTION SYSTEM
AGRICULTURAL DEVELOPMENT
SYSTEMS
WATER SUPPLY
WATER RESOURCE
DOMESTIC WATER
RESERVOIRS
FIXED FEE
WATER FEES
PONDS
IRRIGATION MANAGEMENT
LAND TENURE
PROVINCIAL WATER
WATER APPLICATION
GRAVITY
WATER SOURCES
DOMESTIC WATER SUPPLY
PUMPING
WATER MANAGEMENT
IRRIGATION SYSTEMS
SEEPAGE
WATER PRICING
STATISTICS
IRRIGATION
INTERNATIONAL WATER
AGRICULTURAL WATER
HOUSEHOLDS
WATER SAVINGS
HIGH WATER
WATER USERS
CONSERVATION
ADMINISTRATIVE CAPACITY
FIXED COSTS
CONSTRUCTION
CANAL MAINTENANCE
METEOROLOGICAL STATIONS
RAIN
WATER USE
WATER
SOIL TYPES
PRESSURE
NATURAL RESOURCE MANAGEMENT
RAINFALL
ALTERNATIVE WATER SOURCES
WATER SCARCITY
RESEARCH
FARMING
IRRIGATION WATER
FARMERS
IRRIGATION SCHEME
INDUSTRIAL USE
WATER CONSERVATION
WATER SOURCE
WATER DISTRIBUTION
NATURAL RESOURCES
FOOD PRODUCTION
spellingShingle LARGE RESERVOIRS
WATER ALLOCATION
FRESH WATER
LEAD
RURAL COMMUNITIES
FLOW
LOCAL AUTHORITIES
WATER MANAGERS
WATER USER
DEMAND FOR WATER
RAINFALL PATTERNS
PUMPS
WATER DEMAND
CULTIVATED AREA
MARGINAL COST
COLLECTION SYSTEM
AGRICULTURAL DEVELOPMENT
SYSTEMS
WATER SUPPLY
WATER RESOURCE
DOMESTIC WATER
RESERVOIRS
FIXED FEE
WATER FEES
PONDS
IRRIGATION MANAGEMENT
LAND TENURE
PROVINCIAL WATER
WATER APPLICATION
GRAVITY
WATER SOURCES
DOMESTIC WATER SUPPLY
PUMPING
WATER MANAGEMENT
IRRIGATION SYSTEMS
SEEPAGE
WATER PRICING
STATISTICS
IRRIGATION
INTERNATIONAL WATER
AGRICULTURAL WATER
HOUSEHOLDS
WATER SAVINGS
HIGH WATER
WATER USERS
CONSERVATION
ADMINISTRATIVE CAPACITY
FIXED COSTS
CONSTRUCTION
CANAL MAINTENANCE
METEOROLOGICAL STATIONS
RAIN
WATER USE
WATER
SOIL TYPES
PRESSURE
NATURAL RESOURCE MANAGEMENT
RAINFALL
ALTERNATIVE WATER SOURCES
WATER SCARCITY
RESEARCH
FARMING
IRRIGATION WATER
FARMERS
IRRIGATION SCHEME
INDUSTRIAL USE
WATER CONSERVATION
WATER SOURCE
WATER DISTRIBUTION
NATURAL RESOURCES
FOOD PRODUCTION
Kajisa, Kei
Dong, Bin
The Effects of Volumetric Pricing Policy on Farmers’ Water Management Institutions and Their Water Use : The Case of Water User Organization in an Irrigation System in Hubei, China
geographic_facet East Asia and Pacific
China
relation Policy Research Working Paper;No. 7369
description This article examines the effect of water pricing policies on farmers’ water saving behaviors, using original water user group (WUG) data from a reservoir irrigation system in China. The introduction of volumetric water pricing at the group level, to replace area-based pricing, induces institutional change to prevent each member’s overuse of water when the volumetric price levels are moderate. Depending on the initial conditions, the multiple pathways of change lead to new institutional arrangements, with all of them contributing to water savings. However, when the price is set high enough, many farmers exit a WUG for private irrigation. This tendency is associated with an increased probability that the remaining members do not undertake institutional change and that they do not end up saving water. This may be due to the increased management difficulties among the remaining members whose fields are separated by former members who have now opted out for private irrigation across the WUG. As a result, we do not find evidence that the reservoir water is saved at high volumetric price levels.
format Working Paper
author Kajisa, Kei
Dong, Bin
author_facet Kajisa, Kei
Dong, Bin
author_sort Kajisa, Kei
title The Effects of Volumetric Pricing Policy on Farmers’ Water Management Institutions and Their Water Use : The Case of Water User Organization in an Irrigation System in Hubei, China
title_short The Effects of Volumetric Pricing Policy on Farmers’ Water Management Institutions and Their Water Use : The Case of Water User Organization in an Irrigation System in Hubei, China
title_full The Effects of Volumetric Pricing Policy on Farmers’ Water Management Institutions and Their Water Use : The Case of Water User Organization in an Irrigation System in Hubei, China
title_fullStr The Effects of Volumetric Pricing Policy on Farmers’ Water Management Institutions and Their Water Use : The Case of Water User Organization in an Irrigation System in Hubei, China
title_full_unstemmed The Effects of Volumetric Pricing Policy on Farmers’ Water Management Institutions and Their Water Use : The Case of Water User Organization in an Irrigation System in Hubei, China
title_sort effects of volumetric pricing policy on farmers’ water management institutions and their water use : the case of water user organization in an irrigation system in hubei, china
publisher World Bank, Washington, DC
publishDate 2015
url http://documents.worldbank.org/curated/en/2015/07/24784477/effects-volumetric-pricing-policy-farmers’-water-management-institutions-water-use-case-water-user-organization-irrigation-system-hubei-china
http://hdl.handle.net/10986/22453
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