Research On Incentive Regulation Of Municipal Public Utilities

In March 2019,Premier Li Keqiang stressed in the annual government work report that:"it is necessary to handle the relationship between the government and the market well,and to stimulate the vigor of the market subjects relying on reform and opening-up." As a quasi-public product,municipal public utilities are closely related to the lives of the people,the attributes of public and marketable are intertwined,and the relationship between government and market in this field is complicated.The deepen reform in public utilities has always been the focus and difficulty of academia and industry.With the further development of market-oriented reform in municipal utilities in China,more extensive social capital is invested into the field of municipal public utilities.How to deal with the relationship between government and market in this field,that is,how to encourage social capital to invest regulately,operate independently and develop efficiently has become an issue that local governments must face.This article combs the historical process of market-oriented reform of municipal public utilities in China,and makes clear the reality that the process of this market-oriented reform slows down,which becomes the original purpose of this research.On the basis of summarizing the domestic and foreign research on incentive regulation theory and practice,the theoretical controversies and future research directions are found.The article throughoutly takes the cases of the municipal utilities market-oriented reform in China as argument,takes the multidisciplinary theories as support,and insists on the research paradigm of public administration.The paper discusses the mechanism construction?choice of tools and practical application of incentive regulation in the process of municipal public utilities market-oriented reform,describe the game and cooperative relationship between regulatory institutions and regulated enterprises.This paper uses information economics to explain why municipal public utilities need incentive regulation;uses mechanism design theory and contract governance theory to elaborate the mechanism design of incentive regulation;demonstrates the available tools for incentive regulation of municipal public utilities and the rational allocation of tools with policy tool theory.Based on the theory of policy evaluation,this paper introduces several commonly used evaluation methods in the field of government regulation.Finally,this paper chooses the most commonly used performance evaluation mode,takes the public road engineering franchising in the infrastructure construction field as the evaluation sample,and evaluates the practical application of incentive regulation through large amouts of research and data collation.This paper holds that the theoretical research and practical application of incentive regulation are in its infancy and there is great room to develope in the future.The government regulation institutions should pay attention to the institutional construction of incentive regulation,widen the choice space of tools,scientifically evaluate the effectiveness of market-oriented reform,and positively guide enterprises to operate regulately.The scientific and reasonable application of incentive regulation can effectively promote the rapid development and operational efficiency of the market-oriented reform of municipal public utilities,and to provide a solid institutional platform for the establishment of a more harmonious cooperation environment between the two sides of the regulation.