The paper examines the influence of factor price risk on factor-use efficiency through the adoption of conservation technology. The effect of a mean-preserving increase in factor price risk on optimal input-use efficiency is shown to be conditional on the own-price elasticity of factor use...

Capital Economic Circle that is located in north of China belongs to water resources shortage regions. The per capita water of it is only 1/7 of the per capita water of the whole country, and 1/30 of the per capita water of the whole world. Thus water resources problems become one of the key...