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Study on water pricing method and practice II. Discussion on water price of the Haihe Basin

2013-03-02

QIN Chang-hai 1, GAN Hong 1, ZHANG Xiao-juan 2, JIA Ling 1
(1. China Institute of Water Resources and Hydropower Research, Beijing 100038, China; 2. Beijing Research Institute of Hydraulic Automation, Beijing 100036, China)

Abstract: Based on the connotation analysis of the value of water resources, the theory and practice study for price of water resources were developed. The supply price of water resources should be composed of water resources fee, cost of supply and environment compensation fee for water. Demand price of water resources should be determined by economic value of water resources. Market price of water resources should be determined by provide price and demand price, and it could be evaluated by shadow price in non-marketization system. According to the equilibrium relation of water price, quantitative evaluation method for water resources fee was put forward. Based on the simplified CGE model and related methods, some key factors were quantitatively evaluated, such as shadow price, economic value, water resources fee, supply cost and environment compensation fee for water. The output of this study will provide theory support for pricing mechanism of water resources and practice support for pricing standard. The achievements are significant for practicing most strict water resources management, setting up price mechanism of water resources, allocating water resources by price lever.

Key words: water resources; value; price; fee; environment compensation tax; shadow price

Published in: Journal of Hydraulic Engineering, Vol. 43, No. 4, 2012

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