A price calculation model for urban residential water and its application

Developing a scientific price calculation model for urban residential water is a prerequisite for water pricing which is to control the amount of water for city’s residential use. After comparing different water pricing methods, this article chooses tiered pricing as a basic model and adjusts it by introducing the two variables of “Economic Growth” and the “Population Growth.” In this way, the article designs a multivariate and tiered urban residential water pricing model. The article sets relevant parameters and estimates water tariff in Xi’an. The result shows that urban residential water tariff in Xi’an should be rapidly increased in 2020, water tariff for Tier 1 should be raised to 10.92 Yuan/m³ from 8.21 Yuan/m³ in 2017, that for Tier 2 should be raised to 15.57 Yuan/m³ from 11.7 Yuan/m³, and that for Tier 3 should be raised to 41.93 Yuan/m³ from 31.50 Yuan/m³. Such result proves that the model is effective.