The Research On Social Welfare Loss Of Electrical Natural Monopoly In Hunan Province

The mainstream economical views believed that monopoly will bring low-efficiency, also is the most important factor that obstruct market competition, that's to say, it will decrease our social welfare from different aspects. In China, the electricity industry is a typical natural monopoly industry, it is obvious that the electric transmission and distribution networks have natural monopoly characteristics because of the scale economy and the density economy, in other hand, the generating and selling patches have competition characteristics, the patches can introduce competition mechanism. The thesis mainly research the social welfare loss of the Hunan province electricity natural monopoly, the first, introduce the basic theory of natural monopoly simply , then define the electricity industry belongs to natural monopoly industry, and analysis the cause that the natural monopoly brings to the loss of social welfare, in this part, estimate the loss of social welfare in Hunan province electricity industry by using related model , which includes restrictions as monopolies yield a net loss of social welfare, but also higher prices because of monopoly consumer surplus to producer surplus transformation part, the last, we can see some conclusions, in recently years, the loss of social welfare could cover 4.46% of GDP in peak, which is due to irrational investment and the rising of coal price , on the other hand ,the itself monopoly structure of the electricity industry decreasing the social welfare also; Finally, to increase social welfare, the thesis bring up three views, that's to say, to increase the economic efficiency of the electricity industry , to decrease the loss of social welfare , accelerating the step of separating the monopoly patches and the competitive patches, at the same time, we need to improve the electricity pricing systems and increase investment in electricity projects. The thesis also estimate the changes of the social welfare loss by assuming the effective regulate to the electricity industry, which will change the electric price, and it's indicate that price is an important factor to impact the social welfare; according to the characteristics of the electricity industry itself, the social welfare of electricity industry will be getting a better improve to our whole society by achieving effective competition reasonably a nd finding a dynami c balance of monopoly and com petition.