Study on utility of generalized water resources utilization by adjustment of agricultural water price

Based on the theory of economics, this article studies the relationship between agricultural water price and water utilization to establish the demand function model of agricultural water utilization for the NingXia Atonomous, China. The price elasticity of agricultural water demand, and the agricultural water demand in different water price levels are analysed. Further more, based on the theory of generalized water resources efficient utilization, the efficiency and benefit of water resources utilization in different water price level are analysed. Following the raising of agricultural water price the agricultural water will reduce. The decrease of agricultural water utilization will affect the water cycle process, and influences the proportions of domestic water use, economy water use and ecological water use. The raising of water price will induce the decrease of total water consume, promote the efficiency of water utilization and improve the output of unit water use.