Understanding the Mechanism of Urbanization Affect Agricultural Water Efficiency: Evidence from China

Abstract

Concerns regarding food security and sustainable development have been highlighted as a result of water scarcity and growing urbanization. It is imperative to look into their relationship. This study examines the impact of urbanization on agricultural water efficiency (AWE) in China utilizing China province-level panel data from 2002 to 2019. The findings indicate that urbanization has a U-shaped relationship with AWE, meaning that urbanization first had a detrimental effect on AWE before reversing course. These findings are robust to the inclusion of three measures of urbanization and the estimation of the instrumental variable method. Structural equation modeling of the underlying mechanisms demonstrates that, at higher levels of urbanization, planting structure and irrigation facilities partially mediate the urbanization-AWE relationship; the mediate effects account for between 27.3% and 100% of total effects, depending on the urbanization measurement used. China should continue investing in rural irrigation infrastructure as it urbanizes, as this would improve water efficiency.