Economics Analyse Of Public-private Partnerships For Chinese Urban Water Sector

The thesis mainly expounds the theoretical foundation, problems and policy recommendations of the public-private partnerships (PPP) for Chinese urban water sector. Urban water sector is one of the basic industries of the national economy, which concerns the national economy and the people's livelihood. For a long time, urban water sector has been considered as a public welfare service, which was completely controlled by state-owned enterprise, resulting in low efficiency and poor service quality. Analyzed from the department characteristic of water sector, the products offered by urban water sector, belonging to qusi-Public Goods, can be offered by public-private partnerships to realize the investment goal of private department and the socioeconomic goal of government; Analyzed from the natural monopoly characteristic of water sector, being a network industry , with the progress of economy and technology, the public and the natural monopoly of water sector are weakening constantly. Therefore, the opportunity and condition to enter water sector can be offered to private enterprise by public-private partnerships, coordinating economic scale with competitive vigour. Analyzed from Public Choice theory, the government's monopoly position in water sector should be broken, and the competition between public and private should be set up. Analyzing of the current situation of urban water sector shows the necessity and urgency to introduce private invests. On the basis of the nodal analysis of water sector, the thesis thinks that different industrial organization modes should be implement according to the industry's nature and monopoly degree of every node, and the suitable form of PPP should be chosen or designed in accordance to concrete conditions.There is an extensive development prospect of PPP in China. However, there are still some problems in the application of PPP for Chinese urban water sector, such as lack of relevant law and policy frame, offside and vacancy of government supervise, and indeterminacy of water pricing principle. In view of the exiting problems, some policy recommendations to develop PPP further for Chinese urban water sector are proposed, including structuring and perfecting the regulation of PPP, shifting the government role, establishing the scientific supervision system, designing the rational structure of risks, setting up suitable pricing mechanism, etc.