Economic Analysis of Rural Wastewater Governance in Chongqing from the Public Goods Supply Perspective: A Study on Challenges, Approaches, and Enduring Mechanisms

Abstract

Rural domestic sewage treatment is a crucial component in building beautiful villages and promoting integrated urban-rural development. It yields significant ecological, environmental, and social benefits, making it a typical quasi-public good in rural areas. Taking Chongqing’s rural sewage treatment as the research subject, this paper systematically analyzes the core economic challenges faced in Chongqing’s rural sewage treatment. These challenges include inaccurate design and planning, insufficient capital investment, lack of operation and maintenance mechanisms, and low technology adaptability. The analysis integrates theoretical tools from public goods theory, externalities theory, cost-benefit analysis, institutional economics, and information economics, combined with recent policy documents, statistical data, and field research information. Building on this, the paper proposes establishing a five-pronged long-term governance mechanism integrating “planning-investment- technology-operation-supervision”: emphasizing scientific planning and precise design to reduce sunk costs; innovating a sustainable funding model featuring “government leadership, diversified financing, and shared villager responsibility”; promoting a cost-saving and efficiency-enhancing combination of “appropriate technology and smart management”; establishing a localized and professionalized operation and maintenance system with clear rights and responsibilities; and improving performance-based supervision, assessment, and digitally empowered oversight. This study aims to provide theoretical references and practical guidance for addressing the economic challenges of rural wastewater treatment, enhancing the efficiency of public goods supply, and supporting comprehensive rural revitalization in Chongqing and the broader central-western regions.