|
|
|
| Affordability of domestic water price based on ability and willingness to pay —A case study of Panyu District of Guangzhou |
|
|
|
|
Abstract The affordability of domestic water price was quantified based on residents’ ability to pay (ATP) and willingness to pay (WTP), by using the extended linear expenditure system (ELES) model and the contingent valuation method (CVM). Taking the Panyu district of Guangzhou as an example, we carefully analyzed ATP and WTP of residents living in urban and rural areas respectively. The statistics was calculated on the basis of the surveys and historical dataset on the domestic water expenditure from 2005 to 2009. Furthermore, we analyzed the affordability of domestic water price in 2011. The residents whose income was on and over average can afford the domestic water and their basic water demands were satisfied during the period of 2005 to 2009. However, the residents whose income was below average are unable to pay for the domestic water, which was very common in the rural areas. It was therefore very necessary to place emphasis on these people living in the rural areas. The result based on CVM indicated that the residents are willing to pay 2.163 yuan/m3 for domestic water in 2011. When the domestic water price increases from 2.00 yuan/m3 to 2.15 yuan/m3, the residents whose income was on average should be able to pay for the domestic water.
|
|
Received: 25 June 2011
|
|
|
|
|
|
|
