| This paper gives the support-both in theory and practice-for the revolution of pricing system of water resource in china, especially for the revolution which is based on the Increasing Block Rate Tariff. Therefore this paper reviews and analysts relative researches in such area, they are: the basic theory of water resource pricing which pointed out why and what the Block Rate Tariff for; the research of demand elasticity which gave the key parameter for our model; different theories of cost marching is the base of pricing model; and water market and water property rights are good supplements for the water pricing model. As we finishing the pricing model, we explain why the IBT appeared; we choose a cost model for the pricing; and we discus how we choose the parameters which appeared in our calculation. |
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