Government Regulation On Privatization Of Water Supply Industry

Since 1970s, China has conducted privatization in public utilities and achieved great improvement. Water supply industry is one of the most indispensable elements in public utilities. The reform of privatization in water supply is key to the sustainable development of social economy. Whereas, considering our distinctive national condition, it is quite complex to further advance the reform of privatization. Our country's market economy system and its related system are constantly revised and improved. The mixture of imperfect market system and malfunction of market mechanism made the market failure have a specific performance, which calls for the perfection of an efficient government regulatory system as soon as possible. To establish an efficient system of government regulation for the sustainable development of water supply industry as well as a guarantee of impartial competition for all investors is an unavoidable subject for the privatization of water supply industry.The thesis chooses the government regulation on public utilities as the subject and takes the water supply industry for a typical example to analysis the necessity of regulation in privatization reform; then the thesis summarizes the reasons that lead to the government regulatory failures; at last the thesis produces proposals on the basis of advanced countries' experiences and focus on the individual regulatory failure, including:steadily carrying on the reform of privatization; the establishment of a regulatory mechanism accordance with national condition; the completion of policies and laws; the stipulation of water price system; the strength of supervision and constraint on regulatory constitution.