||Water resources development in Taiwan is constrained by several natural limitations, such as uneven distribution in precipitations, and rivers with short reaches and high flow velocities. Such challenges have prompted the government to promote water conservation through public education. Despite water conservation objectives are gradually being realized in recent years, water resources remain overly exploited because the price the public pays for water does not reflect the scarcity value of water, nor the full costs of water services. The neglect of environmental costs has resulted in high environmental externalities. While the revenues from water charges fall short of the costs of meeting environmental regulations and government policy requirements, water utilities face financial constraints in improving service quality and adopting innovative technologies. Both the financial sustainability of water service provision and the environmental sustainability of water resources management both call for water pricing reform.
For this project, the research will be focused on the areas of 1. Water pricing method and formula, 2. Water supply and pricing of Taipei metropolitan area, and 3. Government subsidies and reasonable water provision costs for the outlying islands of Taiwan. Based on the analysis of relevant data and research results, recommendations about water utilities management, policy implementations, and government administrations will then be proposed.