Integrated agricultural water pricing reform (IAWPR) in China: a state-of-the-art review with focus on strategic significance, policy design, reform process and case reform effect

Abstract

The integrated agricultural water pricing reform (IAWPR) is by far the most systematic, complex and longest reform in the agricultural sector of China. It has lasted for decades from the stage of reform exploration to the current reform development. IAWPR can effectively address resourced price distortion and promote rational allocation of agricultural water resources. By improving China's agricultural water pricing mechanism, government agricultural subsidy mechanism, water-saving incentive mechanism, operation and management (O&M) mechanism of irrigation systems and water quota mechanism, the reform will promote water conservation in agriculture and ensure the effective operation of irrigation systems. It is a major strategic decision made by the Chinese government to address the water security challenges facing sustainable development. This paper reviews the course of the reform, introduces the policy design, key tasks and implementation of the reform, and takes Jiangsu Province as an example to demonstrate the effect of the reform, but also discusses the problems existing in the reform.