Water Use Marginal Effectiveness Calculation Liaoning

Water resources as an indispensable natural resources of Economic and social development, is one of basic conditions for national and regional economic and social development .Productive development and social progress requires a lot of water to support .Long-standing price is lower than the marginal price of water, so it causes the reality of a serious waste of water resources. Water became from the renewable resources into non-renewable resources .The scarcity of water resources presents has increased, their prices rise, people will face the hard decisions that use of limited water resources to achieve the greatest economic benefit , so the economics of water resources is particularly important.Economics of water resources is the nature of the use of economic tools, such as price theory, property rights theory, and transaction cost theory to study the human's choice behavior in using of water resources. The aim is to achieve the rational allocation and use in time and space.Water resources is the fundamental base for the sustainable development of national economy, which is also an important product factor, the production function was applied to calculate the water utilization margin benefit of 14 cities in Liaoning province from 1998 to 2007 in this paper. The fuzzy is data method was adopted to cluster the 14 cities into three categories according to the water utilization margin benefit, and the temporal difference was analyzed by the cluster center, the result showed that the water utilization margin benefit was continuously increasing, which reveals the fact that with the development of economy, the scarcity of water resources was enhanced, and the resource value of water resources was increased. The index and Gina coefficient were adopted to decompose the difference of water utilization margin benefit among the west, middle and east regions of Liaoning province. The result showed that the total difference fits the inversed U shape curve(Kuznets Curve), and the difference in region was the main cause of total difference, both the difference in region and the difference among regions were decreased. The results have some significance for water resources sustainable development and utilization in Liaoning Province.