Study On Electric Power Universal Service Social Welfare Function And Welfare Leakage

Electric power universal service (EPUS) aims to ensure that all citizens, including those who live in remote areas, can enjoy basic electric power service at affordable price, in order to improve the level of social welfare. To describe and measure EPUS social welfare is one of the most important aspects to reflect the effect of EPUS. EPUS carries the features of general public policies. Contradiction between the universality of a general public policy and the subjectivity of individual welfare can cause leakage and effect the implementation of EPUS. Based on welfare economics theory, social welfare function is an effective tool to measure the level of social welfare, and the welfare leakage is determined by the difference between the actual social welfare level and the expected society welfare level. Therefore, this paper will evaluate the effect of EPUS through building the EPUS social welfare function and welfare leakage model, to provide a reference for the government to adjust and optimize the EPUS policy.Paper includes four parts: The first section studied the main factors influencing the EPUS recipient individual welfare. The factors influencing the EPUS recipient individual welfare can be divided into objective and subjective factors. According to the Customer Satisfaction Theory, this paper used factor analysis and Logistic regression model to study the 18 factor to get the main factors influencing the recipient individual welfare.The second section analyzed the welfare mechanism of the EPUS recipient individual. Based on the subjective and objective factors affecting mechanism, the paper applied microeconomic theory to establish individual objective welfare function influenced by income, then used the cumulative prospect theory to establish individual subjective welfare function influenced by education degree, finally built the recipient individual welfare function based on the theory of capacity.The third section set up the EPUS social welfare function and described the welfare leakage mechanism. The paper expounded the EPUS principle of fair and efficiency, established the EPUS social welfare function based on the traditional utilitarianism on the premise of the individual welfare cardinal utility comparability, then analyzed the welfare leakage mechanism lead by the public policy attributes.The fourth section carried on the empirical research. The paper measured the EPUS social welfare level of EPUS recipient areas in Yunnan Province as an example to verify the rationality and feasibility of the EPUS social welfare function and welfare leakage mechanism.Accordingly, this paper obtained the important factors affecting the recipient individual welfare were the objective factors such as individual capita income, electricity usage and the subjective factors such as education degree, occupational status and so on. It built the recipient individual welfare function including the subjective and objective factors. It put forward the EPUS fair efficiency view which increase efficiency on the premise of fairness, established the EPUS social welfare function, analyzed the welfare leakage mechanism and proved the reliability of the functions through the empirical study.