Marginal Opportunity Cost Pricing for Wastewater Disposal: A Case Study of Wuxi China
Industrialization has given birth to a new environmental problem in both developed and developing countries -- wastewater collection, disposal, and treatment. Inappropriate wastewater disposal is one of the major sources of water pollution in urban areas. The cost of wastewater collection, disposal, and treatment is an important component of the full economic cost of water supply in urban areas. The correct calculation of its marginal cost is important in estimating the marginal cost of water supply. A review of the existing literature on marginal cost pricing for water showed that this area has not been fully examined and hence, further research is needed. China is rapidly developing. While industrialization has provided several benefits to the country, it has also brought with it serious water pollution problems. The total volume of wastewater disposed in China's urban areas increases by an average annual rate of 6.6 percent. Most wastewater is drained directly into rivers without any treatment. The percentage of industrial wastewater in relation to the total wastewater has decreased, while the percentage of live wastewater has increased since the mid-1980s.
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