The Theory And Emprirical Research On China’s Water Price Regulation

Water is the source of life, the vital of production, the base of ecological, and is animportant and indispensable resource for human survival and development, is also essentialfor people’s production and life. The crisis of water resources in China for a longtime not to take, the shortage of water resources and water pollution has become animportant factor restricting China’s economic and social development. But China’s waterprice policy for a long time under the influence of traditional concepts, resulting inChina’s water price formation mechanism, pricing and regulation system are notreasonable, and have many problems. This paper select from the Scientific Outlook onDevelopment perspective, tries to solve the above problems, and takes the theoretical andempirical studies on the price regulation in China.At first, the first part discusses the background and significance of the study on ourcountry’s water price regulation, and makes a brief overview of the current domestic andinternational on price formation mechanism and study the dynamic regulation systemtheory, then explains the research methods and structural arrangements of this article, andpoints out the innovation and inadequate of this paper.The second part begins with an overview of the economic and technicalcharacteristics of the water sector, namely the water supply of natural monopoly, scarcity,externalities, the price elasticity of demand for smaller and regional differences, etc., whichis the government regulated tariff theoretical basis; followed by elaboration of tariffregulation basic connotation and tariff regulation main content (including price levelregulation, price structure regulation, regulation system), as well as water rights, waterrights trading and water quality regulations exposition, making the theoretical system oftariff regulation richer connotation tariff regulation also can be extended. Finally, the use ofcomparative analysis, from the practical application of both allocative efficiency and socialpoint of view, the main method of tariff regulation on traditional pricing methods andincentive pricing under a brief analysis and comparison. By the third part describes the central role of the price mechanism of the marketmechanism, clarify its significance for the protection and utilization of water resources,combined with the Scientific Outlook on Development and design scientific andreasonable tariff pricing mechanism, the practical needs and the inevitable choice, andaccordingly that the new requirements of the Scientific Outlook on Development,including water pricing adhere to the people-oriented, adhere to sustainable development,adhere to the efficient use of, adhere to cost recovery, etc., which raised the price of watershould be under the Scientific Outlook on Development perspective resource costs,construction costs, environmental costs, management costs six-part viewpoint, reasonableprofits and taxes, the ultimate success of the model established pricing mechanism underthe Scientific Outlook on Development.The fourth part of comparative analysis of the two major aspects of the tariffmechanism for regulating the situation Britain, France, the United States these countries acomparative analysis, and summarize results of their current tariff regulation generallyformed from a tube with a tariff tariff and tariff regulation system a reasonable limit theright to a clear, grade a clear responsibilities, a high degree of specificity of the process ofindustrialization, water pricing principles and reasonable pricing mechanism, the price ofwater and the elements of comparative real reasonable tariff adjustment mechanism,standardized and transparent execution and so on.The fifth part Empirical Analysis of tariff regulation is. Through the history of China’stariff profile management to summarize the legal system sort, summarize results of waterprice reform has experienced administrative and commercial water tariff two stages, anddeveloped from the basic principles of tariff, tariff regulation and the basic contentregulation system, etc. analyzes summarizes the status of the current tariff system, wherebythe results of the analysis are summarized pricing mechanism exists tariff elements ofunreasonable pricing less scientific issues; poor regulatory decentralization and efficiency,regulatory agencies tariff regulation system exists Regulation of lack of capacity, poorwater supply and efficiency of corporate witch hunt, tariff cost audit supervisionmechanism is not fully developed and confusion tariff order and public oversight mechanisms are inadequate and many other issues.The sixth part starting from the Scientific Outlook on Development and theexperiences of developed countries, made a perfect path of government regulation andtariff measures, namely the Scientific Outlook on Development components from ascientific and rational tariff structure, accelerate the promotion of diversification of thepricing mechanism other aspects of the establishment of a scientific and rational pricingmechanism and from the transformation of government functions, a clear departmentalresponsibilities, improve the ability of government regulation, perfecting the tariff costsand improve audit oversight mechanisms to deepen the transparency of governmentregulation regulation reform.