摘要：This paper investigates an empirical evaluation of water management on agricultural irrigation. To address this problem, a real options model was proposed. This model analysis the choice of investment in water savings. Also, the model discusses a linear complementary problem that can be transformed into the inequalities of parabolic variational. By using a power penalty method, we solved the parabolic variational inequalities. The results depicted that the nonlinear parabolic equations’ solution is converges to the rate of order <inline-formula><math xmlns="http://www.w3.org/1998/Math/MathML" display="inline"><semantics><mrow><mi>O</mi><mo stretchy="false">(</mo><msup><mi>h</mi><mrow><mo>−</mo><mfrac><mi>k</mi><mn>2</mn></mfrac></mrow></msup><mo stretchy="false">)</mo></mrow></semantics></math></inline-formula>. A numerical example is given at the end of the paper to demonstrate the theoretical analysis follows from the Three Gorges Reservoir Area.
