Analysis on the Influencing Factors of Farmers’ Cognition on the Function of Agricultural Water Price—Taking Hexi Corridor as an Example

Analyzing the farmer’s behavior and water-saving incentive mechanism is of great significance to implementation explicit subsidy policy agricultural water prices. This paper introduces concept loss aversion from behavioral economics conducts a theoretical analysis prices verify hypotheses by using survey data three inland river basins in Hexi Corridor, Northwest China. The results show that when farmers believe their potential relatively large, has significantly positive impact on incentives under an price subsidy. In addition, irrigation canal evaluation regional differences have negative influences, respectively. Based this, suggestions are made actively promote order save water.