Analysis And Design For Industrial Organization Of Chinese Electricity Industry During The Marketization Proceeding

The reform for Chinese Power System is probing into new way, which is now in the form of "separation of power plant from electric network, connection to the national network by price competition". Market is popular in the world electricity industry since 1980s. Electricity crisis arose more consideration for the electricity market, which happened in California of U.S.A in the early days of 2001,but some developed countries such as England and Argentine still stick to market reform and have acquired good benefit. Many advanced experiences and operation models from foreign countries are worth using for reference for us, and we can find that there is lack of analysis for industrial organization of electricity industry after we made research on a lot of literature from domestic and foreign countries. Therefore industrial organization analysis and design for Chinese electricity industry based on the proceeding of market will have important theoretic signification and practical value for the market reform of Chinese electricity industry.Firstly, on the basis of analysis for development of industrial organization theory, the paper analyzes natural monopoly for electricity industry respectively from produce rule and determinant method, studying measure methods for monopoly degree for electricity generation market, analyzing quantitatively for natural monopoly output on the terms of cost subadditivity and analyzing current market structure for Chinese electricity industry with "Structure-Conduct-Performance" method of industrial organization theory.Secondly, it makes comprehensive analysis for industrial organization character of Chinese electricity industry by the research on transaction cost, economy of scale and competitiveness problem. The paper analyzes comparatively interior transaction cost of integrated model with analysis structure of R. H. Coase and market transaction cost of market model according to bargain proceeding; analyzing economy of scales for electricity industry on the terms of its definition coming up with an improved "survival of the fittest" method to find optimum economic scale and explaining "separation of power plant from electric network" with the view of vertical economy; studying selection and realization for valid competition of electricity industry with Theory of Contestable Market, while setting up a oligarch monopoly competition model for the electricity market based on tax control of government with the thought of dynamic game theory of Stackelberg model, which illustrates the evolvement for market structure and necessity for government regulation.Finally, it analyzes theoretically "connecting overall electricity network together" based on non-equilibrium theory and designs industry organization model on the basis of "connecting overall electricity network together" and the result of above-mentioned industrial organization analysis, which is divided into transition model and realistic model. In the transition model transmission and distribution is not separate while in the realistic model transmission and distribution is separate. At the end of the paper, it forwards corresponding suggestions for industrial organization policy respectively from industry reasonability and market discipline.