Study on Price Elasticity of Agricultural Water Demand in China

摘要

On the basis of the theory of economics, starting with the study on price elasticity of agricultural water demand, the effects of water price on the agricultural water demand were analyzed and quantitative interrelations between them were determined. By applying the methodology of econometrics, price elasticity of the water demand was derived through construction of agricultural water demand function for various irrigation schemes, and furthermore, price elasticity function of agricultural water demand was derived. The study indicated that distinct correlation can be found between water price and water demand, and water price and price elasticity as well. A quantitative analysis was made for agricultural water demand in Yellow River Basin by applying the achievements in the study, and the result showed that rising of water price may reduce the agricultural water demand in the river basin obviously