Research On Pricing Of Reclaim Water

Reclaimed water as the second water source of the city, can resolve the crisis of water resource shortage effectively. The price is a core element of reclaimed water market, the economy of reclaimed water reuse project is affected by the price of recycled water to a great extent. To develop a reasonable price of recycled water is more difficult, this is because the tap water price and water resources fee are relatively low, and while the cost of water recycled water is relatively high in most parts of China, especially in the north-west region.This paper analyzes the current research, combined with China’s actual situation, proposed that reclaimed water pricing should be under the premise of rational division market, give full play to the role of the regulation of ladder- price and guide water users choose to use recycled water. By analyzing the impact on the market players about decentralized and centralized recycled water, using cost-benefit function to create critical distance model of centralized and decentralized, further to research on the range of services of centralized reclaimed water and the minimum economic scale of decentralized reclaimed water project. This paper using the average cost value model to calculate the average cost of recycled water, and analysis the pricing scheme of different objects and different services market. A diminishing ladder pricing model is established which is relevant of recycled water costs, profit function, marginal cost and price elasticity. The quantity and price of recycled water are divided into three steps by using the ladder pricing model.Finally, with the actual situation in Xi’an, using the model established in this paper to divide the range of centralized and decentralized services market of recycled water and determine the minimum economic scale of decentralized reclaimed water in Xi’an.Meanwhile, according to the ladder pricing model established in this paper and using of MATLAB software to estimates the ladder quantity and price of recycled water. By comparing the results of calculations with the actual situation, to verify the operability of this pricing model, and can provide a theoretical basis of market-development prices of the renewable water price.