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Groundwater quota versus tiered groundwater pricing: Two cases of groundwater management in north-west China

Author

Listed:
  • Aarnoudse, Eefje
  • Qu, Wei
  • Bluemling, Bettina
  • Herzfeld, Thomas
Abstract
Difficulties in monitoring groundwater extraction cause groundwater regulations to fail worldwide. In two counties in north-west China local water authorities have installed smart card machines to monitor and regulate farmers’ groundwater use. Data from a household survey and in-depth interviews are used to evaluate the effectiveness of the different regulatory institutions implemented with help of the smart card machines. In the given context, groundwater quota is more effective in curbing farmers’ groundwater use than the tiered groundwater pricing. The study shows that the usefulness of smart card machines depends on their embedding in the societal context and related regulatory institutions.

Suggested Citation

  • Aarnoudse, Eefje & Qu, Wei & Bluemling, Bettina & Herzfeld, Thomas, 2017. "Groundwater quota versus tiered groundwater pricing: Two cases of groundwater management in north-west China," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 33(6), pages 917-934.
    • Handle: RePEc:zbw:espost:226208
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    References listed on IDEAS

    as
    1. Yang, Hong & Zhang, Xiaohe & Zehnder, Alexander J. B., 2003. "Water scarcity, pricing mechanism and institutional reform in northern China irrigated agriculture," Agricultural Water Management, Elsevier, vol. 61(2), pages 143-161, June.
    2. Schoengold, Karina, 2010. "Tiered Pricing and Cost Functions: Are Equity, Cost Recovery and Economic Efficiency Compatible Goals?," Cornhusker Economics 306675, University of Nebraska-Lincoln, Department of Agricultural Economics.
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    6. Giordano, Mark & Villholth, Karen, 2007. "The agricultural groundwater revolution: opportunities and threats to development," IWMI Books, Reports H040039, International Water Management Institute.
    7. Bjornlund, Henning & Nicol, Lorraine & Klein, K.K., 2007. "Challenges in implementing economic instruments to manage irrigation water on farms in southern Alberta," Agricultural Water Management, Elsevier, vol. 92(3), pages 131-141, September.
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    Cited by:

    1. Khampheng Boudmyxay & Shuai Zhong & Lei Shen, 2019. "Designing Optimum Water-Saving Policy in China Using Quantity and Price Control Mechanisms," Sustainability, MDPI, vol. 11(9), pages 1-20, May.
    2. Wei Qu & Yanmei Tan & Zhentao Li & Eefje Aarnoudse & Qin Tu, 2020. "Agricultural Water Use Efficiency—A Case Study of Inland-River Basins in Northwest China," Sustainability, MDPI, vol. 12(23), pages 1-18, December.

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