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Full Cost Accounting of Urban Water-Use

  • Guo-jun SongEmail author
  • Wen-cheng Gao
Chapter
Part of the Future City book series (FUCI, volume 12)

Abstract

The full cost of urban water use is all the cost paid directly or indirectly by urban society based on market price. According to the life cycle of urban water use, full cost can be divided into five parts: water intake cost, water making cost, water supply cost, water draining cost, and sewage treatment cost. In this study, an accounting method is constructed for calculating full cost of urban water use, and it has been proved reasonable and feasible. The case study of city A shows that city A’s full cost of urban water use reaches 6.23 Yuan/ton at least, while local domestic water price is only 2.05 Yuan/ton, which obviously does not cover full cost urban society pay for water use and undoubtedly cannot reflect the real value of urban water resource. It is suggested that water price should be made based on full cost so that the cost of urban water use could be explicit; thus, water price policy can play a more effective role in water resource allocation. Besides, full cost of urban water use accounting can effectively promote popularization and application of private-public partnership (PPP) mode in the field of water service. Lastly, it is necessary to improve information disclosure of full cost of urban water use to realize scientific and democratic management.

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.School of EnvironmentRenmin University of ChinaBeijingChina
  2. 2.Beijing Capital Group co., LTD.BeijingChina

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