FEASIBILITY OF SEASONAL WATER PRICING CONSIDERING METERING COSTS¹

Abstract

Efficiency implications of seasonal pricing, uniform pricing, and optimal seasonal pricing with metering costs are analyzed qualitatively using classical optimization technique. The first two schemes are special cases of the last pricing scheme. A nonlinear‐integer programming model is formulated for a case study application to Salt Lake City to examine the feasibility of seasonal pricing. The analysis indicates that uniform pricing is preferable unless metering costs are substantially lower than present levels.

Dynamic Adjustment Model of the Water Rights Trading Price Based on Water Resource Scarcity Value Analysis

“…In addition, assumption 1 shows that the dynamic adjustment model of the water right trading price can be used as a reference for government departments; 2 is the basis of using the scarcity value to estimate the water rights trading price in this study; assumption 3 is the basis of Equation (9); assumption 4 is the basis of Equations (11)- (13); assumption 5 is the basis of the logistic curve, i.e., the water rights trading price will increase with an increase in water resource scarcity, but the increase will be smaller in a certain position; assumption 6 is the basis of the two parties being able to choose different payment modes through negotiation.…”

“…The average total water resources, total surface water, precipitation, evaporation, industrial wastewater discharge, domestic wastewater discharge, water function area compliance rate, total water supply, total water consumption, effective utilization coefficient of farmland irrigation water, and water consumption of 10 4 CNY were mainly obtained from the Water Resources Bulletin and the government's reports. According to the statistics, from 2012 to 2018, the average water consumption of Helan was 433 million m 3 , of which 399.9 million m 3 was from the Yellow River, accounting for 92.2%, and 33.8 mil-lion m 3 was from groundwater, accounting for the other 7.8%. Furthermore, agricultural and ecological water consumption in Helan was 418 million m 3 , accounting for 94.9% of the total water consumption.…”

“…(1) The cost pricing method. This is a common method for studying water rights trading prices based on the cost of water rights [ 2 , 3 , 4 ]. Tian and Hu [ 5 ] established two models of regional water right negotiation pricing and water drawing right bidding on the basis of the full cost price.…”