| Water supply in cities is of great influence, high-demanding and complicated. There is no doubt that price leverage is critical in order to protect water resource due to the increasing water pollution and water resource limitation. Based on the study of the pricing of municipal water supply, this paper proposed economical cost-based pricing of water supply, the pricing mechanism, and some suggestions. An optimal pricing mechanism is very important and practical to protect water resource, promote concept of water conservation in public as well as let water supply enterprises developing in a sound way.Economical water pricing is a system to protect and utilize water resource, and improve the efficiency of utilizing water resource in the aspects of production, construction and consumption.First, this paper reviewed the current situation of municipal water supply and it price structure, and illustrated the demand and supply of water, types of customers, historical price development, and the pricing mechanisms in Hangzhou and others at home and abroad. It moves to discuss the characteristics of water supply, the factors which affect pricing, pricing mechanism and theory. Then, cost-based pricing mechanism was determined based on the actual situation in Hangzhou, and these theories were re-evaluated by elasticity-pricing approach combined with customers' affortability analysis.Listed companies were selected in this paper because of their better and transparent management and transparency. By reviewing 2001-2006 historical data of those companies, feasibility analysis was accomplished by calculating average water supply cost. Profit margin was counted with related policies, cost of water supply of proposed time period was analysed by formulating linear equation, and the appropriate prices of water in different time periods were discussed considering the cost of fresh water and sewage. Finally, some suggestions were given in the field of pricing mechanism of water supply and its management. |
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