Agricultural Water Conservation Compensation Standard Based on EDM Method

It is necessary to establish agricultural water-saving compensation mechanism to realize water conversation.With the typical EDM method,the impact on the consumer,producer and social surpluses of agricultural water-saving technology input are analyzed.The result indicates that from the study,the input of agricultural water conservation led to the overall increase in social welfare including both of consumer and producer surpluses;the change of the social welfare caused by the policy implementation allocates between consumers and producers,the more impact will be born by the less elasticity side;according to the compensation principle of "who benefits and who compensates" and input-output,the welfare distribution of total surplus from agricultural water conversation input between producers and consumers determines the cost share of agricultural water conversation projects between different subjects,and the basic compensation standard;the building of perfect water market is particularly important for farmers to trade their saved water and increase income,also arouse their enthusiasm to develop agricultural water conversation.