An Analysis Of Property Right Economics On State-Owned Oil Industrial Cooperation Across The Taiwan Strait

Oil, as a special product, has the attribute of capital. Most countries set theproperty of oil industry as state-owned. In the country and area with relative rich oilresource, the increase of net national income mainly depends on the re-investmentfrom the oil export, and it return on investment. The re-investment of oil, whichbehaves as the capital, improved the national welfare and guaranteed the sustainabledevelopment of the economy. The benefit of property could be demonstrated in twoways, social return and private return. The approach to measure the social return ofstate-owned oil company, to prove the advantage of state-owned property, is thedomain of this study.The social return form the industrial cooperation focuses on the negativeexternality from the oil production. According to Coase's view, the owners of propertynot only have the right to produce, but also to pollute. To solve this negativeexternality of resources and environment from the property, government could use thetools as property reallocation, tax and subsidy. Among the assessment process of theresource and environment value, the key is quantitative analysis of the social return oninvestment. The resource and value model of Fredman provided the approach andbase to measure the state-owned corporations in China, and also the theoreticalfoundation to our country's policy-makers, to assist them to measure and comprehendthe benefit from the investment in environmental protection, and to solve theenvironmental compensation in resource negotiation from the investment perspective.The research analysed the fundamental of property, the mode and feature of theoil industrial cooperation to identify the link between property and social return. Thispaper researched the economics foundation of social return systematically. The NewEconomic Fund's approach was applied to analyse the social return in oil industrialcooperation across the Taiwan strait quantitatively. From the analysis result of thejoint venture, the social return of state-owned company could reflect more about itsstate-owned property, which means government, as the owner of the company, gainedmore in the social return. Besides, due to the capital feature of the oil products, thestates, which is represented as government, concerned more about the secure andstable supply of the resources, and the sustainable development of its ownstate-owned oil companies. Then, a creative measuring model for the benefit fromstate-owned oil industrial cooperation was established. This model calculated theeconomic return and social return separately, to verify the practicability of it. The result shows that the model could reflect the gross benefit from the state-ownedproperty, and provide an initial approach to calculate the economic return and socialreturn from state-owned property in an economy entity.