The Analysis on Economic Input-Output of Water Price's Rising

The price mechanism is the signal mechanism of reflecting the scarcity of resources to the consumers. Appropriately raising the price of water will help the rational allocation of water resources and conservation of water. Application of input-output price affects local closed model, quantifies the impact of water tariff adjustment on residents and different economic sectors, analyses the influence of different price adjustment programs on economic performance. The results show that a reasonable adjustment is in the range of tolerance within society, and will not have much effect on the economy. Water price changes affect differently on different sectors. Thus in the formulation of water policies, it should give full consideration to the capacity of the various departments, so that not only help conserve water resources and industrial structure optimization, but also keep the impact on the production and living of residents at affordable range.