Regionally differential water pricing strategy: An example from Karst region of China

The study objective is to analyze the water expenditure of 4315 rural households in the Karst region of China. The empirical results have been analyzed by using the extended linear expenditure system model. The study has been based on water expenditure, which provides a feasible differential water p...

Full description

Bibliographic Details
Main Authors: Fan Yang, Noman Riaz, Jianwei Cheng, Guoyong Wu
Format: Article
Language:English
Published: IWA Publishing 2024-03-01
Series:Water Supply
Subjects:
Online Access:http://ws.iwaponline.com/content/24/3/786
_version_ 1797200693328609280
author Fan Yang
Noman Riaz
Jianwei Cheng
Guoyong Wu
author_facet Fan Yang
Noman Riaz
Jianwei Cheng
Guoyong Wu
author_sort Fan Yang
collection DOAJ
description The study objective is to analyze the water expenditure of 4315 rural households in the Karst region of China. The empirical results have been analyzed by using the extended linear expenditure system model. The study has been based on water expenditure, which provides a feasible differential water pricing strategy in the karst region of China. The result shows that (1) the coefficient for water expenditure has been examined as low. The coefficient of water expenditure in the Karst region ranges from 0.534 to 1.025%, the average value is 0.723%, and the modified coefficient ranges from 0.814 to 1.508%, with an average value of 1.070%. (2) The marginal consumption propensity of rural residents in the Karst region is 0.2%, and the marginal consumption propensity in each province ranges from 0.1 to 1%. (3) The per capita basic water demand has 3 m3. In this scenario, the study recommended that basic water prices range from CNY 2.091 to CNY 3.468 per cubic meter. If the water consumption exceeds basic demand (3 m3 per month), then the bearing water price shall not be lower than CNY 2.091 to CNY 3.468 per cubic meter and not higher than CNY 7.122 per cubic meter. HIGHLIGHTS Analyzed the water expenditure of 4,315 rural households in the Karst region of China.; The basic water prices range from CNY 2.091 to CNY 3.468 per cubic meter.; The water price reform in rural China should be subsidies and flexible.; Increasing financial subsidies for low-income households and charging discount fees to households with idle water equipment.; Water pricing mechanism should be flexible for everyone.;
first_indexed 2024-04-24T07:35:42Z
format Article
id doaj.art-db15569a207c42fbafa2b3882a945710
institution Directory Open Access Journal
issn 1606-9749
1607-0798
language English
last_indexed 2024-04-24T07:35:42Z
publishDate 2024-03-01
publisher IWA Publishing
record_format Article
series Water Supply
spelling doaj.art-db15569a207c42fbafa2b3882a9457102024-04-20T06:36:08ZengIWA PublishingWater Supply1606-97491607-07982024-03-0124378679810.2166/ws.2024.030030Regionally differential water pricing strategy: An example from Karst region of ChinaFan Yang0Noman Riaz1Jianwei Cheng2Guoyong Wu3 Western Modernization Research Institute of Guizhou University, Guiyang 550025, Guizhou, China School of Economics, Guizhou University, Guiyang 550025, Guizhou, China Western Modernization Research Institute of Guizhou University, Guiyang 550025, Guizhou, China Western Modernization Research Institute of Guizhou University, Guiyang 550025, Guizhou, China The study objective is to analyze the water expenditure of 4315 rural households in the Karst region of China. The empirical results have been analyzed by using the extended linear expenditure system model. The study has been based on water expenditure, which provides a feasible differential water pricing strategy in the karst region of China. The result shows that (1) the coefficient for water expenditure has been examined as low. The coefficient of water expenditure in the Karst region ranges from 0.534 to 1.025%, the average value is 0.723%, and the modified coefficient ranges from 0.814 to 1.508%, with an average value of 1.070%. (2) The marginal consumption propensity of rural residents in the Karst region is 0.2%, and the marginal consumption propensity in each province ranges from 0.1 to 1%. (3) The per capita basic water demand has 3 m3. In this scenario, the study recommended that basic water prices range from CNY 2.091 to CNY 3.468 per cubic meter. If the water consumption exceeds basic demand (3 m3 per month), then the bearing water price shall not be lower than CNY 2.091 to CNY 3.468 per cubic meter and not higher than CNY 7.122 per cubic meter. HIGHLIGHTS Analyzed the water expenditure of 4,315 rural households in the Karst region of China.; The basic water prices range from CNY 2.091 to CNY 3.468 per cubic meter.; The water price reform in rural China should be subsidies and flexible.; Increasing financial subsidies for low-income households and charging discount fees to households with idle water equipment.; Water pricing mechanism should be flexible for everyone.;http://ws.iwaponline.com/content/24/3/786basic water pricerural chinawater pricingwater supply
spellingShingle Fan Yang
Noman Riaz
Jianwei Cheng
Guoyong Wu
Regionally differential water pricing strategy: An example from Karst region of China
Water Supply
basic water price
rural china
water pricing
water supply
title Regionally differential water pricing strategy: An example from Karst region of China
title_full Regionally differential water pricing strategy: An example from Karst region of China
title_fullStr Regionally differential water pricing strategy: An example from Karst region of China
title_full_unstemmed Regionally differential water pricing strategy: An example from Karst region of China
title_short Regionally differential water pricing strategy: An example from Karst region of China
title_sort regionally differential water pricing strategy an example from karst region of china
topic basic water price
rural china
water pricing
water supply
url http://ws.iwaponline.com/content/24/3/786
work_keys_str_mv AT fanyang regionallydifferentialwaterpricingstrategyanexamplefromkarstregionofchina
AT nomanriaz regionallydifferentialwaterpricingstrategyanexamplefromkarstregionofchina
AT jianweicheng regionallydifferentialwaterpricingstrategyanexamplefromkarstregionofchina
AT guoyongwu regionallydifferentialwaterpricingstrategyanexamplefromkarstregionofchina