2008
DOI: 10.1007/s11269-008-9336-7
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Evaluating and Predicting Shadow Prices of Water Resources in China and Its Nine Major River Basins

Abstract: Water pricing plays a crucial role in water resources management. Water shadow price is an important reference in setting water price. It was said that in practice it is almost impossible to obtain water shadow price by solving a linear programming model. In this paper we use water conservancy economy input-occupancyoutput tables of the nine Chinese major river basins, and combining input-output analysis method with linear programming method we develop a linear programming model with restrictions on the final … Show more

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Cited by 45 publications
(30 citation statements)
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“…The benefit from groundwater recharge is equivalent to the groundwater value (B 3 , yuan) and can be calculated based on the infiltration increased amount (V b ), the groundwater recharge coefficient (β) and the groundwater price (p b ) which is using the shadow price of groundwater resources. The shadow price is an approach to quantify the real value of water resources, also reflecting its true resource scarcity (Liu et al 2009). The calculation equation of groundwater recharge benefit is given as:…”
Section: Benefit From Saving Green Space Irrigationmentioning
confidence: 99%
“…The benefit from groundwater recharge is equivalent to the groundwater value (B 3 , yuan) and can be calculated based on the infiltration increased amount (V b ), the groundwater recharge coefficient (β) and the groundwater price (p b ) which is using the shadow price of groundwater resources. The shadow price is an approach to quantify the real value of water resources, also reflecting its true resource scarcity (Liu et al 2009). The calculation equation of groundwater recharge benefit is given as:…”
Section: Benefit From Saving Green Space Irrigationmentioning
confidence: 99%
“…where u e is the monetary value of water, being CNY ¥9/m 3 [35]; Some studies use a small range of data for the estimation of water shadow price in China, leading to a nonrigorous value [36,37];…”
Section: Benefits Evaluationmentioning
confidence: 99%
“…The agricultural sectors include field crops (summer cereals, winter cereals, oil crops and legumes, and cotton), intensive crops (vegetables, fruit, and horticulture), livestock (livestock and dairy), and other agriculture (fishing and forestry). The nine watershed regions are associated with major river basins in China, which are Southeast Rivers Basin (SE), Zhujiang River Basin (ZH), Yangtze River Basin (YT), Southwest Rivers Basin (SW), Huaihe River Basin (HA), Songhuajiang and Liaohe Rivers Basin (SL), Inland Rivers Basin (IL), Yellow River Basin (YE), and Haihe and Luanhe Rivers Basin (HL) (Figure 1) [28]. As TERM works with administrative regions within a country, in practice, we attribute individual provinces to particular river basins using the greatest-area method and aggregate those to form the watershed regions.…”
Section: Modeling Frameworkmentioning
confidence: 99%