Comparison Study On Regulation Reform In Natural Monopoly Industry Between China And Western Countries

Until 1980, governments of western countries had carried strict regulation policy in natural monopoly industries which were defined by traditional economic theory, such as telecommunication, electricity, railway transportation and some local public utilities. Case has been different since the end of 1970s or the beginning of 1980s. Over the past several decades, numerous regulations have been repealed or reformed, and function of market mechanism has been widely paid attention to in these countries. Almost simultaneously, reform in natural monopoly field started in China. Reform in 1980s mostly covered the field of investment and distribution while reform in recent years focuses on releasing entry regulation and stimulating competition. Although regulation reform in natural monopoly industry of China reflects substitutable relationship between regulation and deregulation as that of western countries, reform of China can not be simply considered as a kind of change in regulation field, because our reform bases on transitional economic system while reform of western countries belongs to business within market economic system. Difference between two kinds of economic systems as groundwork of regulation reform results in difference of reform course and path.The paper consists of introduction and other eight chapters. Chapter 1 is abstract, which tells significance, background and scope of this research, and provides a abbreviated retrospect of past related studies and theories. Chapter 2 gives reasons of government's interference in natural monopoly field. On one side, regulation is adopted to deal with natural monopoly. On the other side, market failure like public goods and externality exists innatural monopoly field, which need government's correction. Verifying each other, the two factors lay firm theoretic foundation for past strict interference of government including the two forms of regulation and government's direct supply or nationalization. Chapter 3 reviews and compares traditional governance systems in natural monopoly industry of China and western countries, nationalization policy of China itself was necessary content of planned economic system while Nationalization policy of U. K. intended to make up market failure as strict regulation policy of U.S. A.. Chapter 4 studies common reasons behind the worldwide regulation reform current. In spite of outcome of western countries' theory and practice, they can still be applied to explain practice of our reform. These factors can be divided into three categories. First is about new perspectives on natural monopoly. The second relates government failure which means regulation is not the only and best way to solve problem of natural monopoly. The third concerns recent opinions of market failure like public goods and key to correct it. Chapter 5 looks into commonness of regulation reform. The commonness provides a clear revelation for direction of our reform. Chapter 6 compares and analyses regulation status of China and Western countries. Distinct gap existing between China and western country reflects prominent problems in regulation status of China. Chapter 7 discusses why the course of China's regulation reform was different from that of western countries. As a result of public choice in China's regulation reform, executive monopoly aims to protect benefits of interest group. Chapter 8 puts forward some suggestion on how to construct market-orient regulation framework and deepen the reform . Chapter 9 is case analysis. This Chapter elaborates furthering regulation reform in China's electricity industry from acomparing perspective according to the clue of the whole paper.The innovation of the paper is what follows. Deeply studying difference and commonness of regulation reform in natural monopoly industry between China and western countries, the paper has a conclusion that our regulation reform should be combination of repealing planned regulation and establishing market-orient regulation. Besides, a whole framework about how to deepen China's reg...