On the Excess Burden of Water Resource Charge

Using the method of Harberger triangle,the article points out the existence and measure of excess burden of water resource charge.Then it analyses the causes of excess burden,that is,the relative price of goods and substitution effect.Although collecting water resource charge will realize in loss of efficiency,it has no alternative choice,due to the benefit,over not executing the charge,which will be gained from the collection and use of the water resource charge in the long run.The article puts forward measures for water resource charge optimization under condition of ensuring the collection of the charge and avoiding increase of excess burden.