The Research On Water Pricing Methods And Model

Water resource is a complex system coupled with the development of human society and environment. Human society has gone through the stages of agricultural civilization, industrial civilization and today's ecological civilization consecutively. In the era of industrial civilization, our environment suffered a tremendous destruction, the water resource vital for human being's survival could not escape the catastrophe. China is a nation in a serious shortage of water resources, the lack of water resources has more and more restricted China's sustainable development. In a market economy, water pricing decision determines the supply and demand of water, involves the vast number of consumers' social welfare and relates to the equity and stability of society. So the proper usage and protection of water resources has become a very prominent and realistic problem and the proper pricing of water resources has a far-reaching realistic significance as well as a strategic significance.Under the background of resource economy research and being an important component of it, the research on the pricing of water is a very complex system involving a wide range of fields. Based on the sustainable development theory, from the perspective of resource management and its coordination with economic policy, the present study tries to explore the connotation of water resources' value, the composition of water price, the water pricing mechanism, as well as its effect on the balance of water supply and demand. By analyzing the advantages and disadvantages of the current water pricing methods, according to the complexity and fuzziness of water resource value, the present study tries to apply the principles of AHP and fuzzy mathematics to the construction of water pricing model and verifies it by citing some specific examples. Based on the theories and methods of economics and mathematics and according to the views of the theory of sustainable development, it states that water cost price on a sustainable development basis covers five-parts, namely, resource costs, engineering costs, environmental costs, and profits and revenue; By using AHP, as well as the basic tenets of fuzzy math, an all-cost comprehensive water pricing method has been established which covers the area of resource water, engineering water and environment water. At the end of the paper, some relevant recommendations are given.The innovative point of the paper is that by applying the basic tenets and methods of AHP and fuzzy mathematics to the research of water resource value, a comprehensive evaluating model was constructed and a system solution to the comprehensive evaluation of water resources was reached. Using the sustainable development theory as a guide, the value of the entire cost of water pricing was studied and a model was constructed. The innovative research of the theories and models in this study can promote the development of relevant subjects such as resource economics, and offers some useful theoretical bases and guidance for the relating government departments to make out some policies.