The Research On Natural Monopoly Structure Efficiency Of China's Electricity Industry

Having developed for many years,the electric power industry of China gained great achievements.Howerver,under the background that the reform of electric power industry is deepening and electricity damand is increacing,we have to evaluate the policies effectiveness.At the same time, the power industry as a traditional natural monopoly industry,the reform cannot be accomplished in one-step,it still is a process of exploration that what kind of theory we can use to guide the deepening of reform.This thesis study the economic efficiency of China's electric power industry from the theoretical and empirical aspects,then analyze the major factors that influence the efficiency of power industry,and try to make policy recommendations for reference.First, the thesis reviewed relevant literatures,then in view of natural monopoly as a special form of monopoly,it can be divided into monopoly structure and monopolistic behavior,which influence the efficiency in different aspects.We can draw a conclusion that the efficiency of natural monopoly structure is not all negative,but to some extent positive.While the monopolistic behavior will certainly result in the loss of social welfare.Focused on the power industry, this paper examine the efficiency change of the power industry structure from the aspect market centralization, the differentiation of products and entry & exit barriers.And preliminarily study the efficiency of resource allocation of the power industry.In order to understand the impact of different factors more clearly,we have established a profit model and a TFP model to test the effectiveness in China's power industry.and the results consistently show that since the reform ,the efficiency is statistically improved,moreover the impact of monopoly structure on the efficiency is getting smaller, we must focus on the regulation of the behaviors of power enterprises .