Research On Water Pricing In China

The value in use of water is determined by its natural property, the necessity of water pricing is determined by its competitive and exclusive consumption. Reasonable water pricing is an effective way to adjust the distribution of water resources, to promote the conservation of water resources and to propel China's sustainable development.Nowadays, there are some problems in water pricing system in our country: firstly, although the system of water laws is basically complete, the implementation of laws and regulations are not complete; secondly, the theory of water pricing is not perfect, for it can not reflect the requirements of sustainable development; thirdly, the power of water price management is too centralized.At the present time, although China is also a developing countries, we can find that the goal of China's water price reform is rather similar to the existing price system in United States, Britain and Canada from the comparison and analysis of international water pricing system. Therefore we draw a conclusion that we must implement a system on water pricing which can secure the sustainable consumption of water resources.The water pricing model based on the theory of trio-composed water price which can secure the sustainable consumption of water resources is an important basis of water pricing in China, but it is unperfect. In fact, besides resource price, project price, environment price, profit and revenue, the cost of institutional design and innovation is also a part of the full-cost water pricing model. The improved model not only makes the original model perfect, but has great practical significance: it must make water price reasonable, and then, it will optimize the allocation of water resources and promote sustainable use of water resources.On the other hand, although it is only a try to study the culture and the legal base that put the theory of full-cost water pricing into practice from the perspective of New Institutional Economics, the try has great practical significance the same: it can reduce the cost of institutional design and innovation.