A Study of the Irregation Water Pricing System in China

Feeding 22% of the world’s population with 6% of the renewable water resource, China is undoubtedly facing severe water scarcity. Since agriculture uses most of the water in China, it is important to discuss whether irrigation water is well controlled. China is currently using a mix of volumetric-based, area-based and quota allotment water pricing systems. For irrigation use, water pricing varies in different provinces and the pattern turns out to be somewhat random. This capstone is based on existing information of the eight Yellow River Basin provinces. It studies current water price systems and irrigation situation in the provinces and independently provides thoughts and recommendations on a proper irrigation water pricing system that fits China.