The Impact Of Decentralized Regulation On The Performance Of Urban Water Supply

The process of urbanization is closely related to the development of urban water supply industry.With the rapid development of China’s regional economy and society,urbanization in China is experiencing an unprecedented acceleration.At the same time,the continuous improvement of urbanization not only brings a good opportunity for China’s urban water supply industry,but also makes our urban water supply The industry is facing severe challenges,aggravating the contradiction between water supply needs.Therefore,the Chinese government is facing a thorny dilemma: while ensuring adequate water supply and safe drinking water in urban areas,it is necessary to solve the institutional supply of government regulation in the development of urban water supply industry.To this end,China has promulgated a series of policies on the urban water supply industry and supervised the reform of the water supply industry.Despite the country’s firm commitment and unremitting efforts to the urban water supply industry,the shortage of water resources and low-quality drinking water and the inefficiency of industrial production are still the outstanding problems that most cities currently face.Whether regulatory reform promotes the urban water supply industry in our country Supply capacity improvement? Since China is a centralized state structure,the central government has absolute authority and control over local governments.However,why is central government’s policy difficult or even unsuccessful in actual implementation?How can the government achieve the objective of ensuring supply and promoting efficiency in urban water supply industry?In view of this,firstly,this paper examines whether regulatory reform promotes the supply performance of urban water supply industry in our country.Using the panel data of provinces in the urban water supply industry from 2005 to 2013 and using the fixed effect estimation method,from the aspects of market access and price regulation Test whether the government regulatory reform has promoted the comprehensive production capacity of urban water supply industry,the total amount of water supply and residents to improve the level of water use.Secondly,in the analysis of the determinants of the performance of urban water supply industry in our country,from the perspective of political economy,this paper analyzes the current incentive mechanism of our central government to decentralize the local government.And on this basis,The Impact ofIncentives on Urban Water Supply in China.In this paper,we use the panel data of 24provinces(cities)in China from 2004 to 2014 to conduct statistical tests.In the process of testing,using the fixed effects and stochastic effects estimation methods,we analyze the impact of fiscal decentralization,officials promotion on urban water supply The impact of industry development performance.(1)Empirical analysis of whether regulatory reform promotes the supply performance of urban water supply industry in our country shows that:(a)Price regulation does not have an intuitive promoting effect on the performance of supply in urban water supply industry,and there is no price regulation in China To comprehensive water supply capacity and total water supply and water penetration rate increased.(B)Entry into regulation has a significant impact on the performance of supply in the urban water supply industry.This study finds that entry control has a significant positive impact on total urban water supply and overall production capacity:(2)An analysis of the impact on the performance of urban water supply industry shows that:(a)higher levels of fiscal decentralization and higher official promotion City water supply industry,the total level of water supply.(B)An increase in the degree of fiscal decentralization will reduce the level of labor productivity in the urban water supply industry;the promotion mechanism for officials is not conducive to raising the level of labor productivity in the urban water supply industry.To sum up,with the continuous marketization reform of urban water supply industry in our country,government-led reforms have achieved remarkable results in diversification of investment subjects,privatization of water supply enterprises and market open competition.These efforts by the government However,due to the lagging behind of traditional planned economy management system reform of water supply industry and the lack of effective system design and overall continuous improvement,the traditional planned economy and management system of the traditional planned economy and management System and project construction as the core industry development strategy still restricts the improvement of production efficiency of urban water supply industry in our country.The reason for this is that,fundamentally speaking,the promotion of government officials under decentralized pressure is the key to these problems.The fiscal decentralization system has enabled the provincial government to gain greater autonomy in decision-making over policies and make it flexible and timely to make scientific and rational reform and economic development decisions after considering the actual conditions in the region.For a long time,the infrastructure ofChina’s residential water supply and water supply industry has mainly relied on local governments.In the context of fiscal decentralization,the performance of China’s urban water supply industry is far from satisfying compared with the gratifying economic growth performance.The reform of water supply industry is slow,the overall efficiency is low,and the regional differences are significant.The economic performance index of officials’ GDP growth rate has become the main objective pursued by government officials at all levels.Local government leaders revolve around the Official Promotion Championship with GDP growth as core goal.Therefore,though the decentralization system has ensured the absolute authority of the superior government to reward and punish the lower government officials,such strong incentives and restraints make the local governments directly responsible to their superiors rather than to the residents in the area.Local governments have different interests in the total supply of municipal water supply industry and the efficiency of the industry,and local governments are not motivated by the productivity of the urban water supply industry,which may make the development of urban water supply industry difficult.In other words,as long as there is no change in the incentive structure for government governance in our country,it is impossible for local governments to have the inherent impetus to further improve and enhance the total volume and efficiency of public services such as water supply.The central government’s policy of reforming the water supply industry is good Willingness to lack of automatic implementation mechanism.Finally,based on the results of this study,in order to achieve sustained and efficient development of China’s urban water supply industry and solve the current dilemma,the Chinese government should consider these three suggestions:(1)Clear intergovernmental financial and personnel powers,reasonable allocation of expenditure Responsibility;(2)reform officials performance evaluation mechanism,change the local government decision-making preferences;(3)the establishment of urban water supply industry multiple supervision and management system.