Water rights reform and water-saving irrigation: evidence from China

As a market-based water resource management, the water rights reform (WRR) will allocate water rights to water users and allow water users to trade water rights, which can realize the reallocation across water users. In this context, the adoption of water-saving irrigation (WSI) is an important technical form to adapt to the reform. Based on this, this paper studies the impacts of the WRR on WSI using the difference-in-differences (DID) strategy. The results show that the WRR could increase the land area for WSI by an average of 13.63%. The WRR could promote the expansion of high-efficiency irrigation mainly because the WRR could promote the expansion of spray and drip irrigation areas, and micro-irrigation land areas, which are high-efficiency water-saving irrigation technologies. In addition, the WRR also could improve agricultural production by increasing agricultural water productivity and planting area (including the sown area of grain crops and cash crops), but the WRR does not reduce agricultural water extraction. Therefore, the WRR could increase agricultural production without increasing agricultural water extraction.