Estimation of awareness and perception of water scarcity among farmers in the Guanzhong Plain, China, by means of a structural equation model.

This paper applies a structural equation model (SEM) to analyze the formation of awareness and perception of water scarcity, based on a cross-sectional dataset of 446 farmers in the Guanzhong Plain, Shaanxi Province, China. We find that age, percentage of time spent on farming and social network are the main determinants of awareness. Water price and drought experience are the most important explanatory variables of perception. In addition, awareness and perception strongly interact. The results obtained in this paper are relevant for policymaking, since environmental behavior, which includes efficient use of natural resources, tends to improve if supported by internalization of social norms, which in its turn, is promoted by awareness and perception. From the analysis it follows that spreading information via social networks, rather than via the media, is an important vehicle to enhance awareness and perception and thus to improve irrigation water use efficiency. Special attention should be paid to part-time farmers who are limited in directly perceiving water scarcity. Finally, more use should be made of the price mechanism to strengthen perception and awareness.