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Research On Problem Of Natural Monopoly Industry Organization Model In China

Posted on:2010-09-10Degree:DoctorType:Dissertation
Country:ChinaCandidate:Y Y WuFull Text:PDF
GTID:1119360278974330Subject:Political economy
Abstract/Summary:PDF Full Text Request
Because electricity, gas and other industries are considered as basic industry with strong characteristic of natural monopoly for a long time, these industries are strict regulated by government and in a state of complete monopoly. every segment in industry chain take the organizational structure of vertical integration, and the majority are state-owned enterprises. In particular, considering the importance of oil and gas resources and energy security referring to national economic security, traditionally these industries tend to form the state monopoly to ensure energy supply security. Since 2003, high dependenc on foreign countries in energy supply and energy shortage has seriously affected the normal economic order, and energy security is being threatened. When analyzing the problem of energy supply security, the domestic research is from the perspective of technical efficiency as well as international cooperation, while the institutional factors referring to oil and gas industry development has seldom been questioned and concerned. In other words, does this industry organization model, institution under state monopoly in oil and gas industry under the organizational structure have a negative effect to energy supply security? Is this industry organization model efficient? What negative effect does it have on national national economy? This needs to study the energy industry organizational model type, the corresponding institutional arrangement and their performance from the perspective of organization model.At the same time, price reform on resource has become the topic of public concern, and establishment of price forming mechanism which reflects market supply and demand situation as well as resource scarcity degree is the ultimate goal of price reform on resource. Although the trend of resource price market-oriented reform has been recognized, how to carry out this reform? And does it mean to release resource price regulation? These problems haven't been discussed further. If monopoly condition of resource product market and concerned institution arrangements remained unchanged, removing price regulation simply will result in the abuse of monopoly power, therefore, market-oriented reform of resource price eventually relied on changing existing organization model, breaking monopoly structure and fostering market power. Price regulation can be removed when market comptition come forth, and thus the ultimate goal of resource price market-oriented reform can be achieved. Therefore, the study on organization model type , its' efficiency, and its' evolvement of oil and gas industries, especially gas industry with natural monopoly characteristic he type of organizational model, has important practical meaning to Chinese natural gas industry development and natural gas resource price market-oriented reform.This paper focuses on organizational model, including two section, theoretical analysis and empirical analysis. Theoretical analysis constructs theory system of organization model on natural monopoly industries and natural gas industry. Empirical analysis makes use of constructed theory framework to explain different evolvement route of natural gas industry in foreign countries. In addition, it recognizes the organization model type of natural gas industry in china, has an empirical test on its' performance, and gives the future development route. Specially, seven steps are given to complete above analysis.Firstly, the referred basic theories to this paper are introduced. On the basis of institution economics theory, nine kinds of organization model types are constructed. In addition, performance evaluation system on natural nomopoly industry organization model is offered, including five indicators, that is economical efficiency, fairness, supply security, technology progress and social obligations, and this system is used to analyze performance on natural monopoly industry organization model evolution. Because of the fairness indicator which is foucused mainly in this paper, theories about interest groups are summarized in the following.Secondly, based on organization model system of natural nomopoly industry and conbined with sprcific structural characteristics of natural gas industry, organization model types in natural gas industry are described in greater detail, and organization model types with structural characteristics are got. The main coordination mechanism is recognized by judging which determines natural gas wellhead price, and the secondary coordination mechanism is recognize by judging structural characteristic. Among these structural factors, entrance strict is the main basis judging secondary coordination mechanism because which is the most obvious factor distinguish whether market is open-up. Subsequently, changes of government intervention during evolution course of organization model are analyzed in natural gas industry, and D index and calculation method are given which measures monopoly degree in natural gas industry under different organization model types.Thirdly, the constructed organization model theory is used to explain different evolution route including America, English, Argentina, Brazil. The analysis shows that it transferred from free hierarchy to controlld freedom, full hierarchy to controlled freedom, full hierarchy to controlled freedom, full hierarchy to controlled freedom, respectively for these four countries. Full hierarchy and controlled freedom are two kinds of extreme organization model type in practice. A series of structural changes and institution arrangenment are needed to transfer from the former to the latter. Specifilly, in upstream production area, barriers to entry are eliminated, permittance of exploration and exploitation resource can be obtained equally through competition. In middle wholesale market, TPA institution, structure separation and spot market should be established.Fourly, organization model theory framework of natural gas industry is used to analyze Chinese natural gs industry. First of all, the process of natural gas industry market opening is recalled and some important institutions are analyzed, such as market access system, oil and gas resource mineral rights system, natural gs price forming mechanism. The conclusion is that natural gas industry in china has been in full hierarchy. Subsequently, market structure of upstream and middle area are analyzed and got the following conclusions. From 1996 to 2006, market structure in upstream area is oligopoly III or oligopoly IV. The degree of market monopoly has decreased after oil industry restructure in 1998. Market structure in middle area is in a highly concentrated oligopoly, and the level of market concentration index is high and descend with time which shows major consumption area of natural gas in china has been concentrated in some region. At the same time, there is a great deal of spare transportation productivity which reflects lagged development of downstream gas distribution market. Finally, according to D index which measures nomopoly degree in different organization model, monopoly degree in Chinese natural gas industry under full hierarchy is caculated.Fifthly, performance of Chinese natural gas industry organization model is analyzed, especially, the problem of benefit distribution in full hierarchy is discussed deeply. What are the interest bodies, what's benefit distribution state among every interest body, what's the root of unfair benefit distribution, what does unfair benefit distribution have effect on? Along the logic of these problems, problems of benefit distribution are discussed among upstream, midstream, downstream manufacturers in industry chain between central and local government, among resource owners, resource exploitation monopoly providers, goverments at all levels and consumers.Sixthly, the effect that deregulation of oil and gas industry in 1998 has on industry performance is tested by econometrics method. Two assumptions needed to are offered. The first assumption is that deregulation is helpful to introduce competition, enforce competence of oil and gas enterprises to enance profit levels. The second assumption is that deregulation results in promotion of industry efficiency in oil and gas mining industry. Based on the above assumption, two econometric models are constructed, profit model and efficiency model. Taking sample data from 1984 to 2006, the test takes cointegration mothod considering structure change and have unit root test and cointegration analysis which shows that deregulation has obvious effect on industry profit and efficiency. Above analysis proves that deregulation in oil and gas industry in 1998 bringede competition which promotes industry performance.Finally, the future route which the organization model of natural gas industry will evolve along is proposed. Reform of natural gas industry in our country should be gradual which change from full hierarchy to free hierarchy firstly, and realize controlled freedom model then. Change from full hierarchy to free hierarchy is that on the basis of remaining wellhead price, transportation rate and retail price regulation market access in every section of industry chain is released and now enterprises promote competition. Therefore, reform should be realzed in upstream production area and middle pipeline transportation area respectively. In upstream production area, resource right system of oil and gas and equitable market access system are needed to establish. In middle pipeline transportation section, equal entrance to pipeline and spot market should be established. On the side of gas price formation mechanisms, cost plus profit method transfers to net pull back. At the same time, legal framework for oil and gas should be made. What is noted is that those institution measure has sequence of time in practice. At present, what is most important is to correct institution which result in unfair benefit distribution. Through the amendment of oil and gas mineral rights system, competition is promoted among the three petroleum companies, at the same time launched an internal organizational structure reform of these companies. However, such changes may be more dependent on competitive pressures which investment liberalization will bring about. Clear institutional framework is necessary to achieve the target pattern of the natural gas industry. Under the guidance of legal framework, when several bodies has competed truly, price regulation of natural gas can be bolished and only retain control of the pipeline transportation, organization model of natural gas industry will transfer to controlled freedom.
Keywords/Search Tags:Natural Monopoly, Organization Model, Interest Groups, Interest Distribution
PDF Full Text Request
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