The analysis of the laddering water price in urban household water based on the ELES model

Regarding to the urban household water—running water as a kind of special commodity, through the improvement of “Extended Linear Expenditure System” model, which deduces the logical relationship between per capita consumption water, laddering water price and per capita income disposable. With the income distribution function of linear stagnation rate adding, and case analysis of Hangzhou in 2008, it can simulate the three-stepped ladder pricing model of household water, and compared with the existing pricing model, it can dramatically save 14.3 ton per capita consumption water.