The Research Of Public Utility Investment

It is the climing citilization ratio that push the urgent demand of investment in China's public utility. The public utility investment size and efficiency affect the capabitility of the city directly, what's more, the quality of public utility investment show the administration ability of the government. Under the condition of traditional planning economical system, as the sole invester, the government is in charge of all the steps of the planning, investment, operation. Since 1990's, China follows European and Amercian countries, take on the reform of marketization in public utility areas, pluralistical investers are guidied to this area.20 years have passed, is it efficient that China's public utility marketization reform? Wether the contradiction between investment supply and demand in public utility has been solved? How to pomote the reform forward nest step? With the puzzle, this paper research associate issues.Public untility investment can promote economy increase, which is the pre-condition in this paper. After clarify the theorical basis of public utility, the author observe the status of China's public utility investment. It shows that during the 11th five-year-plan period, China enlarge the quantity of public utility investment, it solve the historical debt to some extent and strength the service and product supply ability.Because of the introducing more investors, public utility enterprise developing rapidly in the fierce competence, some of them has grown into huge enterprise group. But since the demand for existed public utility service quality and the extra service quantity have been improved, the capital gap for supply and demand will exist in the near future. The local government realize the low efficiency of public utility enterprise and try their best to enhance the transaction reform and privazation, but the monopoly status of public utility market still exists in some cities. Some city adapt unsuitable reform, the interest of consumer is virolated. Therefore, this paper observes the process of public utility investment system reform, and analysis the problems in the public utitlity investment system. On the base of it, it is pointed out that the most important obstacle to improve the investment efficiency is "path dependence " in planning economic system and " institutional scarce" in transistional economy.The investors participate the public utility investment are divided into government investor, native enterprise investor and foreign business investor. Under the soft financial capital straint, the government investor has the strong will to invest more than necessary, the entrust and agent chain is so long that it hardly can avoid "insider" control, which lower the investment efficiency; native enterprise investor guided by profit, which has higher economic efficiency, they will cancel the services unprofitable and offer "public tragedy"; the foreign business investor are enlarging the market share in China's opening public utility market. According to the different behavior of the investors, this paper analysis the incentive and constraints factors, analysis the advantage and disadvantage of government-guided investment model, specialty investor-guided investment model and government-enterprise cooperation model, in order to offer theortical basis for further public utility system reform.Public utility investment and finacing is two sides of one problem, investment and financing can't be divided. This paper observe the different channel and method for public financing and investment, also give the appraisal. The government financial investment is applied into public utility should be given "generation plan"; special tax and fee applied into public utility ivestment is cancelled because of bad levy and administration ability, it can't last long; debt capital is applied most frequently, time administration of the capital should be given more attention.The final aim for public utilty investment reform is to improve the investment efficiency and realize the maximize the social welfare. Public utility investment efficiency apprisial should be given from three aspect, which including investment decision efficiency, investment production efficiency and investment distribution effieciency. On the base of it, combination with the character of public investment, this paper point out that public utility investment efficiency appraisal should consider economic efficiency, social efficiency and environment efficiency. Therefore, this paper comb the efficiency appraisal index system in public utility investement, suggest fuzzy appraisal method be applied to evaluate the public utility investment project. it set the standard for government which project should be helped.Britian, America, and France etc. developed countries experience more in the public utility market reform, each country has one set of workable administration method. Among the new industrialization countries, Singapore's public utility reform basis has much similar character with China, also Singapore is regarded as the most successful public utility governance country; Latin American countries are experiencing the rapid citilization just like China. Therefore, obseving developed and the new industrialization countries reform experience in public utility investement administration, it is found that capital scarce in public utility is common whether in developed and developing countries. Private capital are introduced to cover the gap of public goods investment is irresistible. But the introduction of private capital need reseasonable entrenc and constraint mechnisim, so that private capital form the new monopoly and erouse social problem. On the base of improving public utility service quantity and quality, the mechnisim of "close the poor" should be set up. In order to gurantee the regulation effect of government, the regulation system should be built before further investment reform.The reform happened in China is more complex than in developed countries, because the former is in trasitional economy, while the latter's market economy sysyem is perfect. But since the reform is happening in different area, there are the effort of cooperational benefit. For example, the associated law and regulation can make the government promise last long in the cooperation of government and enterprise, which save the transacition cost. There are always new problems and new status arise in the public utility reform, so establish suitable disbute settlement mechanism is necessary. The invstors need reasonable investment expect, the government need check and ratify suitable subsidy, for the reason of efficiency and fairness, the marketlization price mechanism should formed earlier. Public utility asset is specialized, the industry entrance and withdraw barrier is high, so lower the barrier, and establish suitable capital withdraw mechanism can relieve the worries behind. In the reform, to gurantee the interest of consumer is not infringed, the formal institution can gurantee the public service safety. In the marketliazation reform, to avoid investor offer serive for the rich and ignore the poor, so the investor should be regulated to offer the general service for all the citizens and establish the "close the poor" mechanism. In the end, to save the cost and improve the investment efficiency, public utility investment and finacing innovation model should be summarized and spread.The paper guided by new institution economics theory, clued by inspiring the investors, confine monopoly, improv ing investment efficiency and enhancing social walfare,abide by the logic rule that abroad to domestic, specialty to common, theory to practice, base the theory on the cases success and defeat, draw the conclusion from the practice, and apply the theory to solve the problem of Liaoning Province public utility reform. Using the data, this paper forcast the investment demand in public utility in the future ten years, analysis the exist problems in the reform, and give the countermeasures.