The Effects of Volumetric Pricing Policy on Farmers’ Water Management Institutions and Their Water Use
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World Bank, Washington, DC
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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.
Palabras clave
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