Law And Economics Research On The Regulation Mechanism Of City Gas

City gas industry is thousands of households connected by pipeline, so directly related to the city's economic development as well as social stability, also determines its typical natural monopoly. In the case of natural monopolies, the market mechanism can not keep running because of monopoly, not complete information, public goods, externalities, economic cycle. At this time, it's necessary for government regulation as a remedy and correct the market failure to ensure the effective allocation of scarce resources. Therefore, countries in dealing with natural monopoly industries, the most of their entry, exit, and price regulation according.China has always regarded as a public welfare undertaking city gas industry invested by the government, government is the owner of assrts, but also a monopoly operator, so this led to the formation of city gas industry complete monopoly.Based on the mechanism of government regulation, structure, and systems for law and economics, combination of the improvement of government regulation of the developed city gas industry, according to China's city gas industry and status of the existing problems, and propose effective measures and recommendations to improve.City gas as an important component of urban public utilities, the main economic characteristics:(1)regional natural monolies; (2)resource scarcity; (3) some degree of public welfare; (4) consumer non-equilibrium.The so-called government regulation, in fact, that is, there is no competition in some of the basic areas of weak or the competition, such as natural, monopoly industry, government through the establishment of a competitive mechanism, or take some mandatory measures, market access in monopoly industries , price, quality, and the like clearly defined in order to guide the monopoly of the economic activities of enterprises. As the city's natural monopoly characteristics of gas, a city gas pipeline network supply only one or very few enterprises monopoly, is a typical area of market failure. Most countries have state-owned enterprises controlled by the city gas industry was monopolized by state enterprises, the government of city gas sectors, the most immediate, but this will inevitably lead to low efficiency. Market-oriented reforms, many private enterprises to enter the city gas industry, although there is a certain degree of competition, but after all, the city gas industry has some regional characteristics, the monopoly is still very serious, more serious information asymmetry. At this time, government regulation is necessary to correct market failures.In competitive markets, prices of products and services are determined by the market, enterprises and consumers are price takers. In monopoly markets, enterprises will be price-makers, which requires the government's intervention, this paper through the market access mechanism, the price mechanism, quality control mechanisms, competition, and other incentive mechanisms for regulation of the market Jingji, so Wei Hu the public interest.The operation of the monitoring mechanism must rely on government regulators system, and the establishment of city gas industry regulator structure is reasonable to follow the following principles: (1) the principle of independence; (2) the principle of rationality; (3) the principle of legality ; (4) the principle of transparency; (5) the principle can be scolded; (6) professional principles.At present, China City Gas Concession in the system, licensing system is the promotion of social capital into a better infrastructure in the form, through specific procedures and methods authorized by the Government to eligible enterprises in the context of a certain time and gas industry products and services business. However, due to public welfare and the natural monopoly, the development of city gas is lagging behind the overall set was also low. With China's accession to WTO, the gradual formation of the socialist market economic system, established franchise system, both non-natural monopoly business in a very effective introduction of private capital in society to alleviate the financial burden of the government, but also to retain control of government power . Although China has made reform of government regulation some success, but under the WTO rules and the rapid development of market economy, China's city gas industry is still a lot of problems: (1) vertically integrated monopoly Yan Zhong, Jin Xing industry impede new competitors; ( 2) Separation of the administrative monopoly serious; (3) sector jobs confusion over regulatory functions of the dispersion; (4) reasonable price mechanism; (5) lack of transparent and comprehensive legal framework.Since the 80s of the 20th century, the United States, Britain, Japan and other developed countries, Zhongxin, countries have on the city gas industry, government regulatory system has undergone major reforms to introduce and continue to strengthen the power of market competition to improve the city's gas industry operational efficiency, the reform wave sweeping the world. This paper by the United States, Britain, Japan, for example, describes the city gas industry developed the status of government regulation and reform measures.City gas industry in developed countries the reform measures and government regulation compared to the situation, China's city gas industry status quo government control is indeed a major problem, from the monitoring system should: (1) legislation as a guide, improve the legal system; (2 ) the establishment of independent regulatory agencies; (3) speed up the transformation functions, separate government from enterprises.From the regulatory mechanisms to: (1) distinguish the city gas industry natural monopoly business and competitive business; (2) speed up the privatization reform, easing market entry mechanism; (3) to break the monopoly and introduce competition mechanism; (4) improve price mechanism, set up scientific pricing.