Study On Comparison Of Urban Water Rate And Innovation Of Pricing Mechanism In Minjiang River Basin

Water resource is indispensable to economic development, and water rate exerts an important influence on the allocative efficiency and sustainable use of water resource. In the background of market economy, study on water pricing is an important project, with study on the level of basin as a significant direction. Minjiang River, the mother river of Fujian province, is the main water source for the cities and counties in the basin. Therefore, a study on the water rate in the basin have general social meaning and have a guiding meaning to optimize water price in the basin . In the paper, based on the water rate in cities and counties in the basin, a statistical analysis and comparison is conducted, the benching management is introduced and a theoretical water rate model is constructed, and then an interpretation of theoretical water rate worked out is given and some countermeasures to reform water rate in the basin are put forward. The paper can be divided into parts as followed:Charpter 1: The background, meaning, contents and course map of the study is stated and the literature on water rate is summarized, including review of innovation on water rate domestic, progress of study on water rate theory home and abroad as well as the status quo study on water rate on the level of basin. Finally the theoretical base and empirical basis is presented and the innovative points and deficiency is summarized.Charpter2: The 36 cities and counties in the basin are introduced and the water quantity and quality of Minjiang River is summarized; then, the water rate status quo in Minjiang river basin is generalized, including classification of running water, water rate policy; finally, the present urban water rates are compared, including that of water for household, for special purpose and other purposes, which leads to the finding that water rates differentiates much in the basin.Chapter 3&4: the rate of water for household is compared and analyzed in detail. The comparison of components of water rate results in the finding that the water rate difference lies in the supplying price. Another finding through questionnaires is that the key element to the degree of satisfaction to household water supplying service is not the water rate, but the quality and the openness and transparency of water rate. According to results of the data analyzed, water rate shows no close relation with regional economy and the urbanization level.Chapter 5: a comparison of labor cost in running water companies in the basin is conducted. Based on the index of labor needed for 0.1 million tons water supply, a finding shows that there is a big divergence among cities and counties in the same basin and the difference in labor cost can even mount to many times among cities and counties . a vertical comparison between the data in 2004 and 1997 shows that as for the index of labor cost alone , the managing efficiency of running water companies do not improve much and companies in certain region even become worse . Meanwhile, non-revenue water in different regions show big divergence and there is a big gap against 8% stipulated domestically.Chapter 6: with the benchmarking introduced, based on other studies and the elements effecting the water rate in the basin considered comprehensively , the adjusting model of running water rate is put forward, of which an interpretation is given. Finally, according to the average cost of different regions, a cost is reckoned to calculate the benchmarking water rate in the basin, which presents as a theoretical reference and is compared to the present water rate, which leads to the conclusion that the present rate is still higher.Chapter 7, a conclusion is drawn according to the whole analysis. Some suggestions are offered according to the conclusions: principles needed to be adhered to for water rate pricing; the industry benchmarking introduced to water rate reform is advised; the unity of sewage treatment rate should take the standard of sewage disposal in the basin as premise; an open and transparent water rate mechanism should be constructed, on the basis of which the water rate hearing system should be improved.