A Study On The Regulation Reform Of Public Utility

Nowadays, the reform in the field of public utility has become the hot spot in the worldwide. Since the reform of public utility in 1990s in China, we have made tremendous achievement. However, there are so many difficulties we never meet before. This thesis is a very relative research on government regulation in the process of reform of highway industry by using the basic theory of economics.The road industry is a very important department in the national economic development, and the highway industry is the result of the development of economy. It is said that highway is the symbol of the country strength and modernization. With the development of economy, the demand for highway has increased dramaticly. But the supply of highway is far away from the demand, because of the various restriction of regulation system. I think the intrinsic reason is result from the inaccuracy of government regulation. Therefore, the reform of government regulation is inevitable during the process of highway industry reform.Following this way, I analyzed the economic characters of highway industry firstly. It is obvious that the highway industry has attributes of natural monopoly, external and non-pure public, which cause the regulation demand. The very famous competitive theory raised by Baumal showed that industries with large-scale economics have the nature of competitiveness same as other industries. Further research manifested that the highway industry accords with the three terms of the theory of competitive market totally. Firstly, the nature of monopoly is gradually reduced because the influence of substitute competition, for example, the improvement of aviation, railway and waterway. Secondly, with the introduction of concessionary dealing, the cost of highway industry could be compensated via the transfer of management right. Thirdly, with the improvement of the capital market in China, the fluidity and resale ability of highway industry's assets would improve greatly. Hence, the analysis made above provide the theoretical foundation of the regulation reform of highway industryAfterwards, I made concrete analysis on the current situation of the regulation of highway industry in three different aspects, including investment regulation, pricing regulation and the administration regulation. And there are three main problems in current regulation system: firstly, the investment system is stuffed result from the lag of regulation reform; secondly, the current policy is distorted because the pricing regulation is unreasonable; finally, the regulation is invalid owing to the...