The Impact Of Water Price Changes On Total Factor Productivity Of Water Enterprises

As a result of the changes in the price of water utilities as a public utility in China,it has often received much attention.The development of water prices in China has gone through a long period of time.From single-system to two-system tolls to the current stepped water price system,water prices have been rising steadily,but the status of water companies has not improved and has been at a loss.Or protect the business.And the focus on water price reform is mostly on the perspective of consumer welfare,and less attention is given from the perspective of producers.Therefore,this paper proposes to explore the impact of water price changes on the total factor productivity of water enterprises,and gives policy advice.This paper firstly reviews the development status of water enterprises in China,the challenges they face,the reform process of water prices and the impact of water prices.Based on the relevant literature,this paper proposes the mechanism of the impact of water price changes on the efficiency of water enterprises.Based on the water supply data of the 2004-2016 Urban Water Yearbook and the Urban Construction Statistical Yearbook in 124 prefecture-level cities in China,the OP and LP methods were used to measure the total factor productivity of water enterprises,and the empirical analysis of the total factor productivity of water enterprises Impact.The results show that:(1)The total factor productivity of China’s water enterprises is in a steady rising stage,but the growth rate is slow,and the average factor productivity is still below 30%;(2)the impact of water price changes on the total factor productivity of water enterprises is more significant,accounting for Compared with 87.3%;(3)The effect of the implementation of stepped water price on the total factor productivity of water enterprises is not significant.Then,the results were tested for robustness,and the total factor productivity was measured by the least squares method and the fixed effect method,and the regional division of the city confirmed the results.Finally,the article summarizes and analyzes the article,and proposes policy recommendations to increase the government’s subsidies for water companies and to open the ladder pricing.