Effect Simulation and Analysis of Water Price Policy to Promote Water Resources Rational Allocation in Tianjin

Hong-Zhen Ni, Ji-Feng Li, Jing Zhao and Jin-Hua Liu

No 332362, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: The water crisis has become a global fact. Relying on the price lever to promote water saving and rational distribution is inevitable trend and requirements for the development of economy. Considering water supply conditions and water use features in Tianjin, using 42 department input-output table of 2007 as the main data base, Based on the general equilibrium analysis model of price policy impact, this paper develops a water price policy impact analysis model that is suitable for Tianjin, with the module which takes into account certain substitutable elasticity of different kinds of water resources. By setting water price ratio between different kinds of water sources and price differentials between water users of the same source, the model can calculate water use amount of industries and residents, proportion of different kinds of water resources use and impact on the economy in Tianjin under multi-variant price policy. Through situational comparison and analysis between the different schemes, the recommended water scheme that can meet optimal utilization of water resources under constraints of water supply and priority sequence of different water use. It can provide a reference for water-price reform that can promote water conservation and reasonable allocation of water resources. The results show that Tianjin water ratio between different kinds of water in 2020 finally recommended is Water price of conservancy engineering: water price of tap: recycled water price: price of waterdesalinize =1：27.35：3.41：4.40, price differentials between different user of city tap water is Residents water price: Water price of general industry: Water price of high water industry: water price of construction: water price of general tertiary industry: water price of high water tertiary industry = 1:1. 7:3. 4:1. 7:1. 7:5. 8.

Keywords: Resource/Energy Economics and Policy; Agricultural and Food Policy (search for similar items in EconPapers)
Pages: 17
Date: 2013
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