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Article

The Impacts of Arable Land per Farmer on Water Markets in China

by 1,*, 1 and 2
1
School of Public Policy and Management & China Institute for Rural Studies, Tsinghua University, Beijing 100084, China
2
ZJU-UIUC Institute, International Campus, Zhejiang University, Haining 314400, China
*
Author to whom correspondence should be addressed.
Water 2020, 12(12), 3433; https://doi.org/10.3390/w12123433
Received: 2 November 2020 / Revised: 28 November 2020 / Accepted: 2 December 2020 / Published: 7 December 2020
(This article belongs to the Special Issue Water Management for Agricultural, Environmental and Urban Uses)
Water trading markets have been introduced in many countries as a means to alleviate water scarcity. However, the performance of water markets varies greatly across different countries, and in only very few countries do they work well. In this study, a two-sector water rights trading model is developed and applied to a case study in China. The results suggest that arable land per farmer is a key factor that affects the performance of water markets in China. This is positively correlated with traded water volume, with the market’s economic efficiency, and with the social welfare the market brings. Although the model simulation ignores other factors, this problem can be solved by selecting a suitable research area. These findings suggest that water markets may be less likely to be effective in countries with small arable land per farmer. View Full-Text
Keywords: water rights trading model; water market performance; transaction cost; arable land per farmer water rights trading model; water market performance; transaction cost; arable land per farmer
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MDPI and ACS Style

Wang, Y.; Xu, M.; Zhu, T. The Impacts of Arable Land per Farmer on Water Markets in China. Water 2020, 12, 3433. https://doi.org/10.3390/w12123433

AMA Style

Wang Y, Xu M, Zhu T. The Impacts of Arable Land per Farmer on Water Markets in China. Water. 2020; 12(12):3433. https://doi.org/10.3390/w12123433

Chicago/Turabian Style

Wang, Yahua, Maosen Xu, and Tingju Zhu. 2020. "The Impacts of Arable Land per Farmer on Water Markets in China" Water 12, no. 12: 3433. https://doi.org/10.3390/w12123433

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