The impact of agricultural water pricing institution on the water rebound effect in western China – based on the policy of comprehensive agricultural water price reform

The water rebound effect (WRE) challenges sustainable irrigation by offsetting gains from improved irrigation efficiency. Using a DID approach and panel data from 1999 to 2022, this study finds that China’s Comprehensive Agricultural Water Price Reform (CAWPR) significantly reduces the WRE in Western China. The reform promotes water-saving irrigation while limiting the reuse of saved water, turning efficiency gains into actual regional water conservation. These findings show that CAWPR can address the irrigation efficiency paradox and support agricultural water sustainability.