The Impact Of Public Resource Pricing On Low - Income Population

Public resources are divided into renewable resources and non renewable resources, renewable resources if the use of improper, then will be transformed into non renewable resources. The consumption of public resources(such as water, forest, mineral, and energy) will inevitably lead to the reduction of the quantity of resources, which directly leads to the shortage of resources in the world. Water pricing is an important content of government public resource pricing. In the backdrop of the global water crisis, the shortage of water resources has become a bottleneck restricting the development of capital economy, how to reasonable and effective use of limited water resources, has become global problem to be solved. On May 1, 2014, Beijing began stepped Ladder water price, try to use "the price" to improve residents’ awareness of water saving. Practice has proved that the ladder water price largely promoted the economical utilization of water resources, but it is undeniable that its social influence on the low-income groups.Urban poverty is one of the world produces in the process of urbanization. As a kind of public resources, for poor families, their current basic living water consumption has reached the life must be the lowest level, even raise prices, still use the original water, the ladder water price not only cannot achieve the goal of saving water, it reduced their original standard of living. From economic development in China, basic public resources rise in prices is an indisputable fact, this directly affected People’s Daily life expenditures, and increased the burden of people’s lives, especially increased life burden of low-income groups. Therefore, the public resources at the same time of price reform, need to establish a corresponding compensation mechanism for low-income earners.This paper with the change of water price in Beijing as an example, using two systems of water price structure and income distribution function, using the incremental step pricing theory, expand the use of the low capital, by using the method of mathematical statistics, measure the ladder water price impact on low-income groups, and subsidies for low income group funds has carried on the quantitative calculation. For this, put forward the subsidy ladder water price, for our ladder water price policy formulation provides a new way of thinking. But considering the ladder water price policy, with subsidies is difficult to control in the process of implementation of difficulties, such as with rewards and punishment ladder water price was proposed on the basis of the solution. rewards and punishments ladder water price system is "punish" high water user, to "reward" the low water consumption.Implementation of ladder program the main purpose is to enhance the residents’ water saving consciousness, improve the efficiency of water use, promote the conservation of water resources utilization, so that more residents of water into the ladder based gradient or the first gradient range. In this way, not only to establish the people’s consciousness of saving water, and on the basis of taking into account the livelihood of the established public resource pricing mechanism, to ensure social stability, and achieving the sustainable development of economy.