A Model for Water Management in China
Ailing Huang1, a ,Jing Cai2,b and Jun Lu3,c
1

ZheJiang Gongshang University ,China

2
3
a

ZheJiang Gongshang University ,China
ZheJiang Gongshang University ,China

sherry2219@sina.com, b caijing37@gmail.com, c lujunluca@gmail.com

Keywords: water resource management, price ladder model

Abstract. The objective of the article is to construct a model to help Chinese government with water policymaking. This paper will take the policy of water price ladder model as an example， respectively pricing for municipal water and industrial water. The strategy of water’s price ladder can promote the conservation of water resources.
Introduction
Literature Review
This paper analyzed the present situation of water resource and found optimal allocation of water based on sustainable development of socio-economic environment for China. And we also put forward a series of optimal water strategy for decision makers, considering socio-economic, environmental and physical aspects.
Water is necessary for life and socioeconomic development of a country. Rapid population rising along with improved standards of living, urbanization and industrial growth has led to the increased demand, competition and conflicts among different water usage sectors. While traditional water demands for agriculture, domestic and industrial sectors remain critical, other in-situ demands, such as for fishing, navigation, tourism, wetlands and environmental needs are getting increased important.1 Water allocation has received considerable attention in the recent past by the scientific community. Previously, a large number of optimization methods were undertaken for allocating and managing water resources in efficient and environmentally benign ways (Bazaare and Bouzaher
1981; Jacovkis et al. 1989; Paudyal and Manguerra 1990; Basagaoglu et al. 1999; Srinivasan et al.1999; Sethi et al. 2002; Gang et al. 2003). In detail, Jacovkis et al. (1989) proposed a multi-objective linear programming model for planning water resources systems; the system was consisted of reservoirs, hydropower stations, irrigated lands, and navigation channels over a river basin. Sylla (1995) proposed a large-scale nonlinear programming model for planning the operations of interconnected facilities equipped at hydroelectric power stations; the decision variables involved the monthly reservoir releases as well as the canal and pipeline flows through turbines, and the reduced gradient techniques were used to solve the problem.

1

M. S. BABEL∗, A. DAS GUPTA and D. K. NAYAK, 2005, ‘A Model for Optimal Allocation of Water to Competing Demands’,
Water Resources Management (2005) 19: 693

Model construction ladder's water price model
Symbols
x

Table 1 symbols description
Meanings
The water consumption of user before reform

Pi, i  1, 2,3

Water price in different situation

Qi, i  1, 2,3

The total amount of water consumption in different situation

Ei, i  1, 2,3

The expenses of water in different situation

ci, i  1, 2,3

The demand of water in different situation

The connotation of water price
With inherent scarcity, water is a resource and the price of water is the expression of economics of scarcity. The price of water should include the price of water supply , water charges , sewage discharge fee , protection fare of water resources and ecosystem restoration costs usually.
This paper believes the price of water is not only necessary to reflect the intrinsic value of the water but also to play a role in regulating the market supply and demand, with the transmission of information and behavioral guidance functions.
Price discrimination
A pricing strategy charges customers different prices for the same product or service. In pure price discrimination, the seller will charge each customer the maximum price that he or she is willing to pay. In more common forms of price