Water Price Formation Mechanism

Water is a kind of commodity and rare resources as well as important strategic resources.Now the situation of water resources in China is short in resource and wasting in using,so the most important task is saving water,and the reasonable water price is the key to solve this problem.Based on the facts of water price reforming of China and Guizhou province,Guiyang City,the forming mechanism of water price is quite systematically and deep researched by enclosing the composing,and classifying of water price,the establishment and calculating of water price.Firstly,supply and demand situation and the existent problems of China's water resources are briefly explained,and the reform course,operative actuality as well as the mainly existent problems of China's water price are analyzed.Secondly,the composition and classification of water price are discussed,and it is pointed out clearly that integrated water price should include resources water price,irrigation project water price,environmental water price and others factors should be considered.And according to the sources of water supply,water price is classified as water resources price(resources water price),irrigation project water price and urban water supply price,among which water resources price includes water resources' property price,value price and scarcity.Then,the establishment theory and methods of water price are researched,and this paper indicates that under the situation of our socialism market economic mechanism,it is necessary to carry out the mechanism integrated with planned economic mechanism and market economic mechanism,that is government controlling price which is based on supply and demand of market.In this paper,many methods of water price establishment such as Marginal opportunity cost model,Supply-Demand-Pricing Model,Shadow Pricing Model,CGE Model,Average Cost Pricing Model and so on are separately discussed,and then pointed out that presently cost calculating method(model) is Average Cost Pricing Model,for it is relatively convenient and applied.The calculating and getting way of water price is also explained in this paper.And then,the material calculating means of water resources price,water supply price of hydraulic projects and urban tap water price are deep researched,and the establishment of water price of the desalting of seawater,the re-using of polluted water and the utilizing of brackish water is briefly explained.Finally,based on the analysis of operative actuality and existent problems of water price of Guiyang City,Guizhou province,Guiyang's tap water price is amply calculated in terms of the whole cost method(Average Cost Pricing Model).By that caculate way,Guiyang's tap water price is 2.79yuan/M~3.And then,some suggestions about water price policy reforming,some research prospects are proposed.