Pricing of Water Resources Based on Consumption Pattern - Taking Water Resources of the South-to-North Water Transfer Project as a Case

Based on an analysis of the pricing and delamination to use of water resources of The South-to-North Water Transfer Project (SNWT) which is a complex giant system and will face various risks during project operation. Dynamic approaches and the theory of self-selecting are used for pricing water supply utility systems. Empirical results show how utility convey capacity and production cost to consumer prices. Selection of the designated consumer consumption pattern is presented such that the optimal condition can be reached with self-selection constraints. Consequently, the self-selection constraints increase the total welfare.