Economic Impact for Local Industry on Changing Water Price Comparison of Two Different Cities

Abstract

 The difference of the unit price of water used has been focused. Since water pricing has some effects on the local economic development, it is important to set an appropriate water price considering the amount of water used in different type of industries. In this study, a statistical approach has been performed to examine the relationship between unit price of water use and area characteristics such as the rate of manufacturing business amount, immigration of laborers and management of sewerage system. In addition, a local economic model that includes the manufacturing industries and households has constructed. In terms of economic welfare, it is desirable to reduce unit of water price in the local area which is depended on the manufacturing industries.