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Use of Market Forces Urged to Distribute Water
A number of lawmakers have stressed the need to introduce a market mechanism to optimize the distribution of water resources.
Zhu Tan, a deputy to the National People's Congress and an environmental protection expert, noted that it takes time to change people's concept that water is an "inexhaustible, inexpensive resource."
He said that Tianjin, a major manufacturing center in north China, has suffered from drought for four straight years, resulting in a serious shortage of water for agricultural irrigation.
But because of the dispute over prices between farmers and the sewage treatment plant, treated urban sewage is now discharged unused, while large tracts of farmland have no access to irrigation.
The farming sector in Jinghai County administered by Tianjin badly needs water for irrigation. Yet farmers agreed to pay only 0.05 yuan for one cubic meter of treated urban sewage, whereas the sewage treatment plant insists on charging the market price of 0.8 yuan per cubic meter.
Because of the lack of consensus, Jinghai's farming sector incurred a total loss of 400 million yuan last year.
Zhu said that a sewage treatment plant with a daily capacity of 100,000 cubic meters has a total annual operational cost of at least 10 million yuan.
If the plant does not charge water according to its costs, it will be unable to make ends meet, he added.
Liu Ruqi, a geology researcher, drew the conclusion that when water prices go up ten percent, water consumption will drop 2.4 percent.
He said, ˇ°We must realize the rational distribution of water resources not only by administrative and legal means, but also by relying on a rational water price mechanism that forms as a result of market forces.
While exhibiting the role of market forces, he said, the government should intensify its regulation because of the enormous difference between regions and water users.
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