Study On The Financing Mechanism Of Unprofitable Rural Infrastructure

Infrastructure as a sort of shareable input has a direct effect on the economic performance or development in a particular region. The development of infrastructure comes first be it in urban or rural areas and accordingly, its development is expected to go ahead of that of the region. Due to the fact that the old dual-system has caused sharp distinction and disconnection between the cities and countryside, there exists a huge gap in their economy, society, culture and life, which ultimately results from the lagging-behind development of rural infrastructure facilities. Therefore, it is an objection in our country for both the present and a long term to strengthen the infrastructure input in rural areas and to promote the construction of a socialist new countryside by making an effective use of the opportunity of "cities helping countryside" and "industries feeding back agriculture".Centering around the financing issues of non-profit rural infrastructure, analyzing both generally and specifically, both logically and mathematically and directed by the related disciplines of public goods theory, investment and financing theory, sustainable development economics, system science theory, game theory, optimization theory, econometrics, financial engineering, project management and so on, my dissertation probes scientifically into the financing structure theory together with the financing mechanism of the non-profit rural infrastructure, and specified type of rural roads and hydropower projects. In addition, it makes a positivist analysis of the theoretical model.The dissertation is focused on the following: an illustration of the content, nature and function of rural infrastructure facilities; an argumentation of the rural infrastructure's effect on the agriculture, rural areas and farmers as well as the rural social civilization based on positivism and investigation; a theoretical analysis of the financing mechanism of non-profit rural infrastructure proposing a study frame and method coupled with the cause, content and types of the system within the frame; the financing structure and its optimizing of a class of non-profit rural infrastructure; the financing mechanism of rural roads and hydropower project with a quantitative research of a few of financing patterns of marketing operation of rural roads which establishes an application model of PPP financing of rural hydropower; an innovative financing model of non-profit rural infrastructure.What is innovative and final about the dissertation is that: 1) while rural infrastructure investment maintains a long-term balanced relationship with the increase of agriculture and farmers' income, rural hydropower, in addition to the long-term balanced relationship, keeps a one-way cause-and-effect relationship with the increase. Besides, the rural civilization and progress is highly dependent on the infrastructure; 2) that based on the self-organization theory, the writer divides the financing mechanism into internal financing mechanism and external financing platform and proposes three financing mechanisms of non-profit infrastructure: finance-oriented, finance-subsidizing and finance-directing; 3) that the study on the application of uncooperative and cooperative game theories to the financing structure of a class of non-profit infrastructure that calls for government financial support and can be operated by the market sets up a multi-objections optimization model, puts forward a solution and makes a positivist analysis of the micro hydropower project in replace of fuel; 4) that it analyzes the financing subjects and channels of rural roads and hydropower projects, the bilateral auction of the denomination of rural roads with the game theory and establishes a pricing model for the development right of the land along the rural roads with a real options theory and raises an application model of PPP financing of the rural hydropower; 5) that it puts forward three innovative financing models of the non-profit infrastructure which are combined BOT financing, establishing rural construction investment corporations and with reliance on which, issuing enterprise bond.The study frame that the dissertation builds of financing mechanism of the non-profit rural infrastructure makes it possible to reform the investment and financing mechanism of rural infrastructure that is directed by the government, involved with society and operated by the market and contributes tremendously in both theory and application to speeding up the rural infrastructure, the construction of a new countryside and realizing the integration of urban and rural areas.