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The Sewage Treatment Industry, Government Regulation Theoretical Research And Applications

Posted on:2008-11-08Degree:MasterType:Thesis
Country:ChinaCandidate:X Y MaoFull Text:PDF
GTID:2199360212998712Subject:Industrial Economics
Abstract/Summary:PDF Full Text Request
Traditionally, the government regulation of sewage treatment is run under the principle of "Cost cover with low profit". As the regulation theory develops, the government regulation demonstrates the extension of regulation targets and the economization of regulation measures. The trend is also embodied in the sewage treatment industry reform now. It is based on the principle of externality, franchise rights operation and the accesssive service genarated by the foundation of industry commensal recycle economy. Thus, the traditional simple "cost cover with low profit" principle and markup pricing is not adequate to meet the needs of the reform.In this dissertation, it's also in favor of the "cost cover with low profit" principle and markup pricing. But considering the franchised operation and the accessive service mentioned above, the information perfectibility of regulation and pricing have been broken. So the accuracy of the actual cost can't be guaranteed. The incentive regulation method in the new regulation economics is used to build a gaming model. The externality of the sewage treatment is brought into the regulation utility function and generate the incentive compatible Nash equilibrium solution of the sewage treatment industry. The research shows that: when the externality is taken into account, the price should be lower than the cost; the preference of the regulator will affect the construction of the transfer payment and the efficiency of the regulation dramatically; some audit or supervise tools can help to improve the regulation.The framework of the dissertation is mainly divided into three parts: firstly, an outline of the government regulation theory is given and it also analyzes its further development trend. Secondly, the problem when dealing with the sewage treatment industry in the development trend is indicated and analyzed. The final is the core point and the main creative opinion,that is ,a regulation gaming theory based on the game theory and incentive regulation method is built to further analyze the problem and bring out the incentive compatible Nash equilibrium solution.
Keywords/Search Tags:Regulation, game theory, franchised operation, accessive service, incentive compatible constraints
PDF Full Text Request
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