China's fast growing economy has brought some environmental problems, especially in water administration. Inefficiencies in irrigation activities have created severe negative effects to the environment of rural communities, and the more serious water shortages hamper food production, too. Major questions at hand are, how to improve water use efficiency, to reduce negative external effects, to optimize water allocation in agriculture, to invest in water saving technologies, and to assure more water for high value added agriculture. This paper investigates the impacts of irrigation technologies and investments in water saving on the rural economy and the environment. By taking into account individual farmers' inclination to adopt modern water-saving... |