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Research on the Price Regulation Reform of Chinese Public Utilities

Author: JiLiuHe
Tutor: LiHua
School: Liaoning University
Course: National Economics
Keywords: Utilities Price Regulation Incentive Regulation Differentiated pricing
CLC: F299.24
Type: PhD thesis
Year: 2008
Downloads: 681
Quote: 4
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Abstract


China is currently in transition from a planned economy to a market economy transformation process, while Western theorists theory on utility prices have developed market economy country-specific background, the lack of the planned economic system to a market economic system under the theoretical system. In this paper, Economic Transitional Period reform utility prices, utility prices for transition countries to explore the theory has a certain theoretical significance. Our utilities basically a continuation of price formation under the conditions of the planned economy the government pricing model; Meanwhile, the private market product price has been formed, its impact, our utility price formation mechanism is also incorporated some of the market economy ingredients. But the price of utilities running posture are still some problems. First, from price regulation model, the basic part of national pricing price formation model, the national high monopoly monopoly pricing. Since these products are involved in people's basic living needs, with a certain degree of consumer welfare, national concern people's lives from the perspective of the development of the price level is often low, resulting in a number of easy to implement the principle of public revenue to make up for lack of product costs, such as water , urban public transport, civil gas, waste or pollution treatment. Low price on the one hand increased business losses, seriously affected the development of these industries; hand and lead consumption transition, serious waste of resources, deteriorating environment, urban transport and so crowded. Secondly, the price of public utilities to develop methodologies lack of scientific principle, according to the average social cost pricing, but the actual execution of individual enterprise pricing, utility pricing lack of scientific basis, does not meet the pricing principles. Moreover, the current implementation of enterprise reporting costs, government audit formulate or approve the price, give companies the use of monopoly caused false opportunity cost, the cost is not binding mechanism. Again, utility price structure is irrational. Unitary pricing methods to make pricing flexibility, or spreads standard is unreasonable. Finally, regarding the prices of public utilities laws and oversight mechanisms are inadequate. Shows that China has not yet managed to find in a market economy the ideal model of utility prices, so research it has a certain practical significance. This study idea is common in product characteristics on the basis of analysis, from utilities starting price formation mechanism of regulation of utility prices situation and analyze the causes of problems, problem-pricing methods to reform the existing deficiencies place, adjust the price levels, improve the price structure, the introduction of incentive price regulation in the natural monopoly business deregulation, the introduction of competition mechanism, strengthen price supervision and legislation and other proposals. This basic framework and main contents are as follows: First, the thesis expounded in the introduction of the problem, the significance of topics, methods and main content. Body of the paper divided into seven chapters: The first chapter is the utility price regulation theoretical basis. Describes the utilities, public goods, the basic concept of price regulation, domestic prices of public utilities regulation theory of evolution, development and current status. The second chapter is utility features and pricing. Describes the characteristics of public utilities; utility prices formed three modes: direct government rulemaking price, the government indirectly rulemaking price deregulation by the market, which specific pricing methods and advantages and disadvantages. The third chapter describes the utility price formation mechanism. Start with the theoretical analysis of the necessity of government price regulation and government failure, and in the general model of price formation on the basis of the variable changes, government regulation with a model to analyze the conditions, price-setting how to achieve social welfare maximization, resource allocation optimal for governments, businesses, consumers, the game between the three analyzes, which are described on the price mechanism of the formation of utility prices. The fourth chapter presents price regulation of public utilities the status quo and existing problems. From the price formation methods, pricing methods, the price level, price structure, price monitoring mechanisms and legal aspects introduced price regulation status quo. And that price regulation of public utilities were problems: the production and operation of public utilities inefficient, or even loss of business; price levels unreasonable; price or spread from a single structure is unreasonable; pricing methods unscientific; price regulation laws, regulations and oversight mechanisms improvement. Chapter V from the government price regulation the limited nature of the dilemma of choosing pricing, utility price particularity of different angles on price regulation of public utilities problems cause analysis. Chapter 6 describes the foreign prices of public utilities reform and successful experience. The United States, Britain, France, Japan and other countries, involving common products have running water, electricity, telecommunications, etc., to their pricing objectives, principles, specific measures to analyze and learn from. Chapter VII of the proposed price regulation of public utilities reform objectives, principles and methods. In promoting social rational allocation; encourage enterprises to improve efficiency; ensure normal operation of enterprises; achieve rational allocation of resources; achieve social welfare maximization; conserve energy, to achieve social goals of sustainable development, the benefit to follow the principle of the unity of efficiency and equity compensation costs , a reasonable return policy, considering the consumer demand and willingness to pay principle, the rational design of regulation and reform of the pricing methodology, the implementation of incentive price regulation system and deregulation, the introduction of competition mechanism, the implementation of differential pricing, strengthen price regulation and legislation work. Innovation of this paper is as follows: 1. In the price formation mechanism for utilities theoretical analysis methods: using the government to pursue social welfare maximization objective function, the manufacturer profit maximization objective function, the consumer utility-maximizing objective function to establish a government, business, consumer prices three dynamic game model. Product government for public regulation analyzed and discussed the necessity of the public to analyze the price formation mechanism for the discussion of the practical problems behind and lay a solid theoretical foundation. 2 In the right of public utility price regulation Problems Cause analysis: respectively, from government price regulation of the limited nature of the pricing method selection dilemma, utility prices particularity of different angles cause analysis, trying to find the root of the system design aspects such as deep-seated causes, and used a lot of the actual data to illustrate. 3 in the prices of public utilities regulation measures: the proposed price for our common views on regulatory reform and has specific practical operation meaningful way, for example, in natural monopoly business to implement a regional competition, complemented, supplemented Benchmarking comprehensive incentive price regulation method, the price structure proposed specific differentiation criteria. The inadequacy of this article: the reform of public utilities prices have always been a lot of confusion exists, more complex factors involved, coupled with my limited, so the price formation utility analysis of the root causes deep enough, it remains to be my future greater efforts to explore.

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CLC: > Economic > Economic planning and management > Urban and municipal economy > Municipal economic profiles of countries in the world cities > China > Infrastructure and utilities
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