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Water Price Reforms in China: Policy-Making and Implementation

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  • Lijin Zhong
  • Arthur Mol

Abstract

Following the conviction that economic and pricing approaches are an essential addition to conventional command-and-control environmental regulation, China has gradually increased attention to, research on and experiments with the application of economic instruments in urban water management over the past two decades. This paper analyzes the actual application and implementation of economic instruments in Chinese urban water sectors, applying an ecological modernization perspective. Water tariffs in China have increased sharply over this period, increasingly representing full costs and increasing water use efficiency. But implementation of water tariffs does run into problems of unclear responsibilities, poor collection rates and institutional capacities. It is concluded that Chinese style ecological modernization should pay more attention to the institutional dimensions of natural resource pricing policies, if it is to profit from the theoretical advantages of economic approaches in urban water management. Copyright Springer Science+Business Media B.V. 2010

Suggested Citation

  • Lijin Zhong & Arthur Mol, 2010. "Water Price Reforms in China: Policy-Making and Implementation," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(2), pages 377-396, January.
    • Handle: RePEc:spr:waterr:v:24:y:2010:i:2:p:377-396
    DOI: 10.1007/s11269-009-9451-0
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    5. Shahbaz Mushtaq, 2012. "Exploring Synergies Between Hardware and Software Interventions on Water Savings in China: Farmers’ Response to Water Usage and Crop Production," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(11), pages 3285-3300, September.
    6. Wanjuan Zhang & Yang Yu & Xueyu Zhou & Shuai Yang & Chuan Li, 2018. "Evaluating Water Consumption Based on Water Hierarchy Structure for Sustainable Development Using Grey Relational Analysis: Case Study in Chongqing, China," Sustainability, MDPI, vol. 10(5), pages 1-15, May.
    7. Changhai Qin & Shan Jiang & Yong Zhao & Yongnan Zhu & Qingming Wang & Lizhen Wang & Junlin Qu & Ming Wang, 2022. "Research on Water Rights Trading and Pricing Model between Agriculture and Energy Development in Ningxia, China," Sustainability, MDPI, vol. 14(23), pages 1-15, November.
    8. Pedro Lucas Cosmo Brito & José Paulo Soares Azevedo, 2020. "Charging for Water Use in Brazil: State of the Art and Challenges," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 34(3), pages 1213-1229, February.
    9. Zhang, Cheng-Yao & Oki, Taikan, 2023. "Water pricing reform for sustainable water resources management in China’s agricultural sector," Agricultural Water Management, Elsevier, vol. 275(C).
    10. Hao Li & Xiaohui Yang & Xiao Zhang & Yuyan Liu & Kebin Zhang, 2018. "Estimation of Rural Households’ Willingness to Accept Two PES Programs and Their Service Valuation in the Miyun Reservoir Catchment, China," Sustainability, MDPI, vol. 10(1), pages 1-19, January.
    11. Jichuan Sheng & Michael Webber, 2019. "Governance rescaling and neoliberalization of China’s water governance: The case of China’s South–North Water Transfer Project," Environment and Planning A, , vol. 51(8), pages 1644-1664, November.
    12. Li, Fan & Phillips, Michelle, 2016. "The Influence Of Regulation And The Operational Environment On Chinese Urban Water Utilities," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235160, Agricultural and Applied Economics Association.
    13. Jia Wang & Jiaoju Ge & Zhifeng Gao, 2018. "Consumers’ Preferences and Derived Willingness-to-Pay for Water Supply Safety Improvement: The Analysis of Pricing and Incentive Strategies," Sustainability, MDPI, vol. 10(6), pages 1-16, May.
    14. Fan Li & Michelle Andrea Phillips, 2017. "The Influence of the Regulatory Environment on Chinese Urban Water Utilities," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(1), pages 205-218, January.
    15. Hefa Cheng & Yuanan Hu, 2012. "Improving China’s water resources management for better adaptation to climate change," Climatic Change, Springer, vol. 112(2), pages 253-282, May.
    16. Chao Bao & Chuang-lin Fang, 2012. "Water Resources Flows Related to Urbanization in China: Challenges and Perspectives for Water Management and Urban Development," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(2), pages 531-552, January.
    17. Georg Meran, 2012. "Europäische Preisregulierungssysteme in der Wasserwirtschaft: Konzepte und Umsetzungsprobleme," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 81(1), pages 167-181.
    18. Xiao-meng Song & Fan-zhe Kong & Che-sheng Zhan, 2011. "Assessment of Water Resources Carrying Capacity in Tianjin City of China," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(3), pages 857-873, February.

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