2021
DOI: 10.3390/su13095197
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Analysis on the Influencing Factors of Farmers’ Cognition on the Function of Agricultural Water Price—Taking Hexi Corridor as an Example

Abstract: Analyzing the farmer’s behavior and the water-saving incentive mechanism is of great significance to the implementation of the explicit subsidy policy of agricultural water prices. This paper introduces the concept of loss aversion from behavioral economics and conducts a theoretical analysis of the incentive mechanism of agricultural water prices to verify the hypotheses by using survey data from the three inland river basins in the Hexi Corridor, Northwest China. The results show that when farmers believe th… Show more

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Cited by 4 publications
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“…Conversely, excessively high water prices make it difficult for farmers to afford water and may lead to reluctant participation in the reform. (4) Appropriate government water conservation incentives and financial subsidies for farmers and water supply units can reduce the input costs of farmers and water supply units for the reform, and a clear compensation mechanism for agricultural water can incentive farmers to save more water [61], thus regulating the behaviors of farmers in water use and guaranteeing the income of farmers [62]. At the same time, appropriate penalties can be imposed on farmers who passively cooperate with the reform and on water supply units that fail to provide quality water supply services in accordance with the provisions of the law [63] to enable farmers and water supply units to actively and quickly participate in the reform.…”
Section: Discussionmentioning
confidence: 99%
“…Conversely, excessively high water prices make it difficult for farmers to afford water and may lead to reluctant participation in the reform. (4) Appropriate government water conservation incentives and financial subsidies for farmers and water supply units can reduce the input costs of farmers and water supply units for the reform, and a clear compensation mechanism for agricultural water can incentive farmers to save more water [61], thus regulating the behaviors of farmers in water use and guaranteeing the income of farmers [62]. At the same time, appropriate penalties can be imposed on farmers who passively cooperate with the reform and on water supply units that fail to provide quality water supply services in accordance with the provisions of the law [63] to enable farmers and water supply units to actively and quickly participate in the reform.…”
Section: Discussionmentioning
confidence: 99%