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SAM FRERE, ERIC ROTHSCHILD, COLLIN SUMPTER, JOSHUA WERNER Beijing, China
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Overview Problem Overview Background Problem Statement Stakeholders Goal Solutions Overview Assumptions Solutions Implementation Timeline Unintended Consequences
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Beijing, China 3000 Years old 2/3 Mountains, 1/3 plains 16 districts, 2 rural counties 16,808 km 2 Semi-arid, semi-humid Continental monsoon climate
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The Problem Lack of fresh water ~148 m 3 per person UN standard for water scarcity 1000 cubic meters ~6 times less Causes Increasing Population Located in arid area of China Climate Change Polluted Reserves Economic Growth
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Population Growth
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Average Precipitation
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Consumption by Sector
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Pollution Guanting and Miyun Reservoirs Quantity and Quality issues Guanting – Category IV Miyun – Not as polluted but contains 15% of capacity Urban Water Use In 2000, only 16% of wastewater was treated In 2010 ~ 60% wastewater was treated
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Stakeholders Industry Domestic Population Agriculture Municipal Government
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Goal Create a sustainable water supply for Beijing which approaches 1,000 m 3 per person by 2050 Increase infrastructure to handle water pollution Population management Increase surface water supply to decrease groundwater consumption Create pricing structure which matches cost of water
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Solutions
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Assumptions Solutions work within the current government structure Population increase is currently 3.8% annually Current population is 22 million Beijing Consumption Rate = 3.25 billion m 3 annually
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Solutions South-North Diversion Project (SNDP) Population Control and Redistribution Water Pollution Control Desalination Water Pricing
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Population Management Cornerstone of escalating water consumption Current population growth rate ~ 3.8% Current population ~ 22 million Carrying Capacity?
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Population Management: Carrying Capacity CC ~ 8 million people…uh oh.
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Population Management: SNDP
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Population Management : How? Immigration vs Natural Increases Beijing = Economic powerhouse Urbanize Western China Xi’an, Chengdu, Kunming, and Chongqing Subsidize living in West (housing prices) Low income tax for corporations, smart growth options
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Water Pollution Control 3 pronged approach: Domestic wastewater management Development of future water treatment plants. Industrial pollution management Current Strategy: pay when pollutant load is greater than standard. Proposed Strategy: pay for all pollutant generation by ton. A direct charge of 1 U.S. $ / ton may decrease pollution by 80%. Remediation of current reservoirs Bioremediation/phytoremediation. Current surface water capacity can be doubled.
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Desalination in Caofeidian Why Desalination? Caofeidian – Coastal city located 230 km from Beijing The Desalinization Project Price of First Stage : $67 million Completed Oct 2011 Funded and controlled by Beijing Enterprise Water (BEW) Current Capacity: 500,000 m3/day Short-Term Goal: 1 million m3/day (approx. $1.4 billion, 3-5 years) Long-Term Goal: Replace coal with renewable energy Beijing Pipeline: $700 million (1-2 years) Depends on Results of SNDP
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Water Pricing Potential Increasing Block Tarriff (IBT) High-income groups generally use more water. The proposed will incentivize conservation for those who use the most water. Generate revenue for infrastructure development for quality and quantity of water such as offsetting cost of S to N project, desalination, water treatment, and pollution management.
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Unintended Consequences Government participation Completion dates for SNDP Discontinuity of economic growth Elasticity of water price from new technologies Average lifetime of a dam ~ 50 Years
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Questions?
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