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The Price Regulation of Chongqing Urban Water

Author: ZhouQin
Tutor: MengWeiDong
School: Chongqing University
Course: Public Administration
Keywords: Urban water supply Price regulation Price policy Water price structure
CLC: F299.24
Type: Master's thesis
Year: 2007
Downloads: 178
Quote: 2
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Abstract


Water shortage, environmental deterioration and frequent droughts have become main barriers to sustainable development of Chongqing’s society and economy. The urban water price is not only an important indicator of water shortage but also the adjustment lever to optimize water allocation. Reasonable exploitation and sustainable utilization of water resources depend on scientific and sound price regulation. Given the natural monopoly and necessity of urban water supply, the goal and core of Chongqing’s urban water price regulation is to set reasonable water price and price structures according to the principle of efficiency and fair allocation, which embodies water-saving awareness and reasonable water allocation. However, there are some problems in the urban water supply. The water price has long been much too low, the distribution depends too much on water price, and the market fluctuation mechanism of water price is not complete. The current water price regulation principle is ambiguous, and the urban water price regulation is not scientific and normative. Meanwhile, the collection of wastewater treatment fees is unscientific and the management and usage of water is irregular. The water price system is unreasonable, and the water price formation mechanism cannot incarnate the principle of efficiency. Those defects of current urban water price regulation deteriorated the crisis in urban water supply. It embodies no social justice and hinders the development of water enterprises.The thesis investigated the urban water supply situation in Chongqing and the management of water corporations. It analyzed the existent problems of urban water price regulation. Combining public management theory, the thesis put forward an innovational path for the urban water price regulation. First, on the precondition of reforming management system, clarify relations between the government and water corporations, gradually bring in the franchise rights, and really realize the separation of Government and Enterprise. Second, set scientific and reasonable water price, introduce the opinion that the water pricing mechanism should be based on average costs, the customers-anticipated water price should be on the basis of the long-term marginal cost, and the water-price regulated fund should be set up to curb frequent price adjustment. Third, perfect the water price structure, carry out the stepped-price and two-part water price, and rationalize water price step by step. At last, give a privilege to increase wastewater treatment fees, make use of wastewater, and adjust water resources reasonably to improve water protection and water saving, alleviate the water shortage and finally realize sustainable water exploitation and utilization.

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CLC: > Economic > Economic planning and management > Urban and municipal economy > Municipal economic profiles of countries in the world cities > China > Infrastructure and utilities
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