Valuation and Pricing of Agricultural Irrigation Water Based on Macro and Micro Scales

Abstract

Research on water pricing is important to effectively address the water resource crisis. The agricultural industry has the greatest water-saving potential. Using Heilongjiang Province, the main grain-producing region in China, as an example, an agricultural irrigation water price was determined based on macro and micro scales, and affordable water prices for peasants were calculated. The results show a macro-agricultural irrigation water price of 1.023 yuan/m3, indicating that the current agricultural irrigation water price does not reflect the water source value. The micro-agricultural irrigation water prices for surface water and groundwater range from 0.993 to 1.008 and from 2.343 to 2.358 yuan/m3, respectively, indicating differences in cost recovery and value. The surface water prices for maize, rice, and soybeans ranged from 0.286 to 0.476, from 0.101 to 0.179, and from 0.180 to 0.307 yuan/m3, respectively, while the appropriate groundwater prices ranged from 0.317 to 0.507, from 0.131 to 0.210, and from 0.211 to 0.337 yuan/m3, respectively. The government could formulate different subsidy policies according to the actual situation and raise agricultural irrigation water prices to the full-cost level to enable the implementation of law of value.

Keywords

• agricultural irrigation water price
• emergy theory
• full-cost water price
• shadow price
• water resource value