(May 20, 2011) In addition to natural conditions, the water shortage in Beijing is also aggravated by low water prices which do not reflect the scarcity of water resources. Low water prices are equivalent to subsidizing those enterprises which consume more water, says Fu Tao, Director of the Water Policy Research Center at Tsinghua University.

In addition to natural conditions, the water shortage in Beijing is also caused by the under-pricing of water which does not reflect the scarcity of water resources. Low water prices are equivalent to subsidizing those enterprises which consume more water, says Fu Tao, Director of the Water Policy Research Center at Tsinghua University.

Beijing’s water shortage is being worsened by low prices which encourage the over-use of water, he told Xinhua News Agency on Wednesday.

Global Times, May 20, 2011

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