Research on Financial Subsidy Mode for Agricultural Water Fees Based on Incentive Mechanism of Water-Saving

Based on the analysis of two current representative modes of financial subsidy to agricultural water by introducing the theory of economics, this paper, set up an incentive model of water-saving in the premise of financial subsidy, in order to explore a financial subsidy mode on agricultural water and agriculture water price mechanism suitable for present situation. The research shows that direct subsidy is more efficient comparing to indirect subsidy, while the market´s regulatory function was limited because of current low water price. From the angle of encouraging water saving, the paper put forward that direct financial subsidy of agricultural water based on increasing water price may not only reduce the farmers´ burden on water fees, but also generate water-saving incentives to both water supply unit and farmers, then help promoting the sustainable development of China´s agriculture.