Evaluating the impact of tax-for-fee reform (fei gai shui) on water resources and agriculture production in the Zhanghe irrigation system, China

Mushtaq, Shahbaz and Khan, Shahbaz and Dawe, David and Hanjra, Munir A. and Hafeez, Mohsin and Asghar, Muhammad Nadeem (2008) Evaluating the impact of tax-for-fee reform (fei gai shui) on water resources and agriculture production in the Zhanghe irrigation system, China. Food Policy, 33 (6). pp. 576-586. ISSN 0306-9192

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This article questions the effectiveness and viability of rural Tax-for-Fee reform (Fei Gai Shui) on water resources and agriculture production, taking the Zhanghe Irrigation System of China as a case study example. The Fei Gai Shui reform has been heralded as a possible solution for reducing the excessive fiscal burden on peasants. While the reform may achieve in relieving peasant burdens significantly, the initial impact of Fei Gai Shui on water resources and agricultural production indicate least satisfactory trends.
The policy shows significant impact on rice yield and area. It might also have profound impact on cropping pattern but it has yet to be seen. Dependence on local water resources such as ponds show significant increase after Fei Gai Shui as it discouraged farmers to rely on regional water sources. Although the lower regional water use under Fei Gai Shui reduced the water charges paid by farmers, the savings were mostly offset by increasing pumping costs in accessing water from local ponds. Without any adjustments,
the Fei Gai Shui is likely to cause serious predicament in agricultural sector. It is visioned that local water
resources such as water ponds will continue to play an important role in sustaining agricultural production.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Author's version deposited according to the copyright policy of the publisher.
Faculty / Department / School: Historic - Faculty of Sciences - No Department
Date Deposited: 22 Jul 2009 12:37
Last Modified: 02 Jul 2013 23:17
Uncontrolled Keywords: rural tax-for-fee reform; multiple regression; water ponds irrigation costs; rice
Fields of Research : 14 Economics > 1402 Applied Economics > 140201 Agricultural Economics
07 Agricultural and Veterinary Sciences > 0701 Agriculture, Land and Farm Management > 070108 Sustainable Agricultural Development
14 Economics > 1402 Applied Economics > 140205 Environment and Resource Economics
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9102 Microeconomics > 910210 Production
B Economic Development > 82 Plant Production and Plant Primary Products > 8204 Summer Grains and Oilseeds > 820402 Rice
Identification Number or DOI: 10.1016/j.foodpol.2008.04.004
URI: http://eprints.usq.edu.au/id/eprint/5162

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