Optimization Of Market Mechanism Of Municipal Public Utilities In Perspective Of The Differences Of Public Nature

Municipal public utilities can be defined as the industry that provides necessary and universal services or goods for residents and productions in urban areas based on public interest. Its development not only reflects the level of the development of urban economy and society, but also is an important manifestation of the public service capacity and management level of city government.China’s reform of the municipal public utilities has achieved a great deal since it was introduced. The reform concerns the change of property rights, the broken of the monopoly, the introduction of a competitive market structure and the franchise system, and so on. The reform has significance on improving the quality of urban public services and the protection of production and living order. However, with the deepening of reform, the reform appears excessive market orientation. In the game of fairness and efficiency, the public of the nature of attributes was ignored, which results in a variety problem such as the increase of prices, redundant construction, and lower product quality.In this paper, I research municipal public utilities in perspective of the differences of public nature. Public nature is the important property and the logical starting point of the municipal public utilities. The Different sectors and segments of municipal public utilities have varying degrees in public nature. The root of the problem is that it ignores the differences of the public nature in various industries and various links of the industry and the market mechanism is used indiscriminately.This paper’s research methods contain normative research, case studies and empirical research and comparative study. The framework is divided into three sectors:general theory of the public nature’s differences, the theory of public nature’s differences and the choice of market mechanisms and the optimal path of market mechanisms. First of all, by analyzing the theory of public goods and natural monopoly theory, public nature can be interpreted from the product attributes and consumer attributes. It interoperates the concept of the public nature in value level and technology level in innovative way. Secondly, it puts forward that differences of the public nature affect the market mechanism of municipal public utilities. And the market mechanism can be interpreted by the relationships between public natures and the property rights, market structure and market tools. Finally, the paper proposes reform paths in the chapter four to six. Attention should be paid to maintain the public responsibility by ensuring security of supply, establishing a reasonable price mechanism and strengthening collaborative governance.The core content of this article is the relationship between public nature’s differences and the choice of market mechanisms. On the theoretical side, this paper supplement the current theory of municipal public utilities’ market mechanisms by Interoperating the concept of the public nature and its relationship with market mechanisms. The paper puts forward specific recommendations on the optimal path of market mechanisms, which has a strong practical significance.