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Adoption of Increasing Block Tariffs (IBTs) Among Urban Water Utilities in Major Cities in China

Authors Li, Li
Wu, Xun View this author's profile
Tang, Yaojia
Issue Date 2017
Source Urban Water Journal , v. 14, (7), August 2017, p. 661-668
Summary Increasing block tariffs (IBTs) have been officially endorsed by the Chinese government since 1998, but by the end of 2013, fewer than half of the country's 36 major cities had adopted IBTs as the tariff structure for their water utilities. Our study examines the main factors affecting these cities' decisions on whether or not to adopt IBTs, considering both general characteristics of the cities and characteristics of their water utilities. A discrete-time hazard model is used for empirical analysis. Results show that factors most likely to affect a major city's decision on IBT adoption include the city's economic development as measured by growth rate of GDP; changes in the relative importance of the domestic water sector; the city's wastewater treatment rate and leakage rate; and business structure of the water utility.
ISSN 1573-062X
Language English
Format Article
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