An empirical study on the treatment of municipal sewage affected by government funds and private funds

Abstract

Municipal sewage treatment, with the nature of quasi-publuc goods[1], is public utilities, and combines the characteristic of both pure public goods and private goods. Therefore its selection of investment and financing mode is also different form those of pure public goods and private goods. There are always inadequate investment funds, inefficient use of funds and other issues in the municipal sewage treatment. Based on the actual situation of chinese investment and financing development of municipal sewage treatment and dividing the source of funds into two categories, the government expenditure and private funds, this paper makes an empirical study on the financing source in municipai sewage treatment by using econometrics methods, and thus finds the effective financing solution on the mobilization of sewage treatment.