Research on Subsidy Strategy of Reclaimed Water Industry

Abstract

Based on the research situation and development demand analysis, the problem aiming to be solved is how to conduct the subsidy strategy in order to promote the development of reclaimed water industry. This paper investigates a cost-benefit model with supply function and demand function, simulating current situation and anticipating future subsidy strategy. The result validates that the subsidy has reduced due to the increasing capacity utilization and that the government can abolish the subsidy strategy in 2021, when the yield rate can meet the requirement of the social need.