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The challenges China faces in terms of water availability in theagricultural sector are exacerbated by the sector's low irrigationefficiency. To increase irrigation efficiency, promoting modern irrigationtechnology has been emphasized by policy makers in the country. The overallgoal of this paper is to understand the effect of governmental support andeconomic incentives on the adoption of modern irrigation technology inChina, with a focus on household-based irrigation technology andcommunity-based irrigation technology. Based on a unique data set collectedat household and village levels from seven provinces, the results indicatedthat household-based irrigation technology has become noticeable in almostevery Chinese village. In contrast, only about half of Chinese villages haveadopted community-based irrigation technology. Despite the relatively highadoption level of household-based irrigation technology at the villagelevel, its actual adoption in crop sown areas was not high, even lower forcommunity-based irrigation technology. The econometric analysis resultsrevealed that governmental support instruments like subsidies and extensionservices policies have played an important role in promoting the adoption ofmodern irrigation technology. Strikingly, the present irrigation pricingpolicy has played a significant but contradictory role in promoting theadoption of different types of modern irrigation technology. Irrigationpricing showed a positive impact on household-based irrigation technology,and a negative impact on community-based irrigation technology, possiblyrelated to the substitution effect that is, the higher rate of adoption ofhousehold-based irrigation technology leads to lower incentives forinvestment in community-based irrigation technology. The paper finallyconcludes and discusses some policy implications

Policies, economic incentives and the adoption of modern irrigation technology in China