Impact Analysis of Water Price Reform of Zhangye, China
Keywords:Water Demand Management, Water Price Reform, Computable General Equilibrium model, Zhangye, China
The Hei River Basin is located in northwest region of China. This region belongs to arid zone, and water resources are one of the main limiting factors of harmonizing the development of ecology, economy and society. Due to the economic growth and the population increase, water consumption has grown rapidly since 1970s in this region especially in the Zhangye district. The rapid increase of water demand has degraded the ecosystems of the whole watershed. Water pricing is very important instrumentally in balancing water supply and demand. Appropriate water price is a very effective countermeasure in changing the social behavior towards water resource conservation, promoting economic efficiency and investment in more efficient equipments. The aims of this study are to analyze the comprehensive impacts of Water Price Reform of the Zhangye district by using an operational Computable General Equilibrium (CGE) model based on building a social accounting matrix (SAM).