China's Power Industry Structure And Performance Study

Having developed for many years, the Electric Power Industry of China gained great achievements. However, with the coming of the globalization of economy and the intensifying of international competition, the history-formed problems in the Electric Power Industry , such as state-enterprise uniformity ,"strips and blocks monopoly " , the low centralization , the ineffective product composition , ineffective system and low-level management , are not only limiting the development of the industry , but also hindering the development of the whole economy in China .How to improve and promote the efficiency and competency of the industry is our pressing task.The thesis is based on the SCP modern theory of industrial organization. Firstly, through analyzing the market structure from the aspect of market centralization, entry & exit barriers and the differentiation of products, the thesis concludes that the market structure of Electric Power industry of China doesn't belong to any type of the popular structures. Due to its particular characteristics, it is a structure of multi-governmental-entity, which makes it impossible for Electric Power Industry of China to conduct like a market entity. Under many circumstances, they are only extended branches of government. Secondly, after analyzing the relations among the conduct of Electric Power enterprises , market structure and market performance, this thesis proves that the low performance and the problems are caused by this structure. Thirdly, this thesis pays emphasis on the analysis that the strange structure and the consequent low performance is the result of the administrative monopoly and protectionism of department, region and central government that bring ours Electric Power Industry long-term to a state of sectional segmentation and regional separate. And that several large reorganization had just formally constructed a market structure of olipoly by force of administration. The achievements should be confirmed of course, but if the problems of state-enterprise uniformity and sectional segmentation in Electric Power enterprises are not resolved from property right and system, so their performance will not be effectively improved. Finally, this thesis advise to carry out state-enterprise parting, break administrative monopoly, establish modern enterprise system, promote the diversification of property, relax the restrict on the private investments.This thesis not only analyzes the status of the industrial organization of Electric Power Industry of China with positive method, but also enlarges the applications of traditional SCP model by introducing the analysis of system and property. This thesis is some useful on how to deepen the reforms and improve performance of Electric Power Industry of China.