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Article

Improving Agricultural Water Use Efficiency: A Quantitative Study of Zhangye City Using the Static CGE Model with a CES Water−Land Resources Account

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Institutes of Science and Development, Chinese Academy of Sciences, Beijing 100190, China
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School of Management and Economics, Beijing Institute of technology, Beijing 100081, China
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Center for Chinese Agricultural Policy, Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China
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School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710061, Shaanxi, China
*
Author to whom correspondence should be addressed.
Academic Editor: Ernest Reig-Martínez
Sustainability 2017, 9(2), 308; https://doi.org/10.3390/su9020308
Received: 1 November 2016 / Revised: 5 February 2017 / Accepted: 14 February 2017 / Published: 21 February 2017
(This article belongs to the Section Economic and Business Aspects of Sustainability)
Water resources play a vital role in human life and agriculture irrigation, especially for agriculture-dominant developing countries and regions. Improving agricultural water use efficiency has consequently become a key strategic choice. This study, based on Zhangye City’s economic characteristics and data, applies a static Computable General Equilibrium (CGE) model with a constant elasticity of substitution (CES) composited water−land resources account to assess the impact of improving agricultural water use efficiency on economy, water conservation and land reallocation. Results reveal that: Zhangye City’s GDP increases by 0.10% owing to an increasing average technical level by improving agricultural water use efficiency; total water consumption decreases by 122 million m3, 69% of which comes from a reduction of surface water use; and land demand increases by 257.43 hectares mainly due to agricultural land demands. With respect to the sectors’ output, export-oriented sectors with higher water intensities in the agricultural sectors benefit most. In contrast, land-intensive sectors contract the most, as the rental price of land rises. Therefore, agricultural water conservation technology should be introduced considering more in surface water. Furthermore, higher demand for agricultural land would reduce land availability for other sectors, thus inhibiting urbanization pace on a small scale. View Full-Text
Keywords: agricultural water use efficiency; CGE model; economic impact; water conservation; land reallocation agricultural water use efficiency; CGE model; economic impact; water conservation; land reallocation
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MDPI and ACS Style

Liu, Y.; Hu, X.; Zhang, Q.; Zheng, M. Improving Agricultural Water Use Efficiency: A Quantitative Study of Zhangye City Using the Static CGE Model with a CES Water−Land Resources Account. Sustainability 2017, 9, 308. https://doi.org/10.3390/su9020308

AMA Style

Liu Y, Hu X, Zhang Q, Zheng M. Improving Agricultural Water Use Efficiency: A Quantitative Study of Zhangye City Using the Static CGE Model with a CES Water−Land Resources Account. Sustainability. 2017; 9(2):308. https://doi.org/10.3390/su9020308

Chicago/Turabian Style

Liu, Yu, Xiaohong Hu, Qian Zhang, and Mingbo Zheng. 2017. "Improving Agricultural Water Use Efficiency: A Quantitative Study of Zhangye City Using the Static CGE Model with a CES Water−Land Resources Account" Sustainability 9, no. 2: 308. https://doi.org/10.3390/su9020308

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