Study on the Pricing of Water Rights Transaction between Irrigation Water Users Based on Cooperative Game in China

Xinjian Guan,Qiongying Du,Baoyong Wang,Wenge Zhang

doi:10.3390/w13121672

Xinjian Guan, Qiongying Du + Show 2 more

Open Access

https://doi.org/10.3390/w13121672

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Abstract

China’s water rights transaction is still in the initial stage of development. There is no systematic pricing method for water rights transactions between farmers. This paper puts forward a pricing model of water rights transactions among farmers in water-deficient areas. The price of water rights transaction consists of cost price and earnings price. The earnings price is determined by studying the crop water production function, calculating the crop’s marginal benefit of the two parties, and combining the Cooperative Game Theory. Finally, the pricing model was applied to the water rights transactions among the farmers of Hetao Irrigation District of Bayannaoer City, Inner Mongolia Autonomous Region. Results showed that under the A4 trading strategy, the overall income increased without losing the interests of any farmer. The increasing income of the three farmer households N1, N2, and N3 after the alliance was 8.14 thousand dollars, 4.66 thousand dollars, and 20.33 thousand dollars, respectively, and the water rights transaction prices of N3 and N1, N2 were respectively 0.485 $/m3, 0.565 $/m3. It is estimated that the model can provide a scientific basis for water rights trading between farmers and the efficient use of water resources.

Highlights

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The efficient allocation and sustainable use of water resources are attracting more and more attention from water users, especially in arid or semi-arid areas [1], and people have been advocating for a market-based approach to resolve the problem of water allocation [2]
Use Formula (3) to construct the water production function of wheat, corn, and cotton according to the constant items a, b, and c of the water production function

Summary

Introduction

The efficient allocation and sustainable use of water resources are attracting more and more attention from water users, especially in arid or semi-arid areas [1], and people have been advocating for a market-based approach to resolve the problem of water allocation [2]. Water rights transactions can optimize the allocation of water resources and promote water conservation in irrigated areas [3,4]. Due to the large amount of water consumption, there is a great potential for water conservation in irrigated areas. Due to the uncertainty of climate, the water rights transactions of water users helps to improve the economic stability of irrigation districts [6]. The study of water rights transactions is of great significance to the sustainable use of water resources and economic and social development

Results

Discussion

Conclusion