172
7 Water Pricing
7.9 Summary
Water pricing reform in China after 1980 has been an exploration of various policy
possibilities. In theory, China has developed a comprehensive, systematic, and
advanced water pricing policy and framework. The framework establishes a variety
of instruments that could, in principle, deal with various circumstances related to
tariffs and their structure. In practice, however, the reform process in China has
progressed hesitantly, through a series of trials and errors: in macro-policy, reform
has wavered between economic, social, and environmental targets; in policy direction, tariff reform has gradually evolved from a service charge to a resources charge
and finally an environmental charge, accompanied by increasing price levels. In
future, under the decisive role of the market in the Chinese economy, it will be critical to develop a clear and sustainable water pricing formulation mechanism. Cost
recovery should be redeveloped as a key principle for service charges.
References
Administrative Court of the Supreme Court. (1996). Response to collecting water resources fee on
thermal power station under the central government.
Beijing Development and Reform Commission. (2004). Notice of water tariff regulation.
Beijing Development and Reform Commission, et al. (2007). Temporary methods for agricultural
water resources fee in Beijing.
Beijing Development and Reform Commission. (2014). Cost-auditing report for Beijing urban water
supply.
Beijing Municipal Government. (1981). Beijing groundwater resources management temporary
methods.
Boland, J., & Whittington, D. (2000). The political economy of water tariff design in developing
countries: Increasing block tariffs versus uniform price with rebate. In A. Dinar (Ed.), The political
economy of water pricing reforms. Oxford University Press and The World Bank: Washington
D.C.
Central Committee of CPC. (1982). Minutes of national rural works meeting.
Central Committee of CPC. (2013). Decision on several key issues on fully deepening reform.
Dept. of Water Management, MWR. (1991). Theory and formulation methods of water supply tariff
from hydraulic engineering. Water and Power Publisher: Beijing
Dinar. A. (2000). Political economy of water pricing reforms. In A. Dinar (Ed.), The political
economy of water pricing reforms. Oxford University Press and The World Bank: Washington
D.C.
Hebei Provincial Government. (1981). Urban groundwater resources management temporary
methods of Hebei Province.
Hebei Provincial Government. (1988). Water resources fee collecting temporary provisions on
country town and its lower regions of Hebei Province.
Institutional Reform Office of the State Council. (2002). Implementation opinion on hydraulic
engineering management institution.
Ji, P. (2009). Urban water tariff reform circumstances and suggestions for China. Macro-Economic
Management, 4(48–49), 52.
Jiang, Z. (1992). Speech on the 14th National Congress of CPC.
Jiang, Z. (1997). Speech on the 15th National Congress of CPC.
7 Water Pricing
7.9 Summary
Water pricing reform in China after 1980 has been an exploration of various policy
possibilities. In theory, China has developed a comprehensive, systematic, and
advanced water pricing policy and framework. The framework establishes a variety
of instruments that could, in principle, deal with various circumstances related to
tariffs and their structure. In practice, however, the reform process in China has
progressed hesitantly, through a series of trials and errors: in macro-policy, reform
has wavered between economic, social, and environmental targets; in policy direction, tariff reform has gradually evolved from a service charge to a resources charge
and finally an environmental charge, accompanied by increasing price levels. In
future, under the decisive role of the market in the Chinese economy, it will be critical to develop a clear and sustainable water pricing formulation mechanism. Cost
recovery should be redeveloped as a key principle for service charges.
References
Administrative Court of the Supreme Court. (1996). Response to collecting water resources fee on
thermal power station under the central government.
Beijing Development and Reform Commission. (2004). Notice of water tariff regulation.
Beijing Development and Reform Commission, et al. (2007). Temporary methods for agricultural
water resources fee in Beijing.
Beijing Development and Reform Commission. (2014). Cost-auditing report for Beijing urban water
supply.
Beijing Municipal Government. (1981). Beijing groundwater resources management temporary
methods.
Boland, J., & Whittington, D. (2000). The political economy of water tariff design in developing
countries: Increasing block tariffs versus uniform price with rebate. In A. Dinar (Ed.), The political
economy of water pricing reforms. Oxford University Press and The World Bank: Washington
D.C.
Central Committee of CPC. (1982). Minutes of national rural works meeting.
Central Committee of CPC. (2013). Decision on several key issues on fully deepening reform.
Dept. of Water Management, MWR. (1991). Theory and formulation methods of water supply tariff
from hydraulic engineering. Water and Power Publisher: Beijing
Dinar. A. (2000). Political economy of water pricing reforms. In A. Dinar (Ed.), The political
economy of water pricing reforms. Oxford University Press and The World Bank: Washington
D.C.
Hebei Provincial Government. (1981). Urban groundwater resources management temporary
methods of Hebei Province.
Hebei Provincial Government. (1988). Water resources fee collecting temporary provisions on
country town and its lower regions of Hebei Province.
Institutional Reform Office of the State Council. (2002). Implementation opinion on hydraulic
engineering management institution.
Ji, P. (2009). Urban water tariff reform circumstances and suggestions for China. Macro-Economic
Management, 4(48–49), 52.
Jiang, Z. (1992). Speech on the 14th National Congress of CPC.
Jiang, Z. (1997). Speech on the 15th National Congress of CPC.