The Regulation Of The Nuclear Power Industry In China In The Context Of The Nuclear Crisis

The nuclear power is the industry that using of heat produced by nuclear fission to generate electricity. According to the standards of the National Industries Classification (GB/T4754-2002), the nuclear power is a part of the electricity industry. Facing the growing energy depletion, and the need of decreasing the carbon emissions, nuclear power occupies an irreplaceable role in the new energy which presents more mature technology and lower cost.In March2011, magnitude9.0earthquake lead serious damage to Fukushima Nuclear Power Station, resulting in leaking a large number of radioactive substances, which trigger a series of global anti-nuclear movements, and the debate whether the nuclear power is necessary, a new nuclear crisis showed up.Compared to some developed countries, one after another exit the nuclear industry, China has just entered the "golden years" of nuclear power development, high-speed development of nuclear power are just a prologue. How to balance the relationship between the rapid energy demand and the safety of nuclear power, and to improve the regulation of the nuclear power industry, have become problems to be solved in the process of nuclear power development.According to the characteristics of the nuclear power industry, nuclear power industry has economic scale, which is suitable for the formation of monopolistic competition and industrial clusters around the leading enterprises. The development of China’s nuclear power industry has a strong administrative guidance background, because China has been mainly relying on administrative ways to regulate the nuclear power industry. The functions of Nuclear power regulation department are not clear and the law about nuclear power regulation has a long way to improve.Safe operation of nuclear power is considered the top priority of the development of nuclear power. The information publication of nuclear power will help the Government develop appropriate policies, as the same time help the nuclear power enterprises to address security risks, improve the safe operation and environmental protection effort. Nuclear power enterprises are in pursuit of profit maximization, government regulation sector encourages the development of nuclear power industry while hoping keeping the nuclear power safe. Since the different goals, as well as the nuclear industry itself has a high-tech features, resulting in asymmetric information among nuclear power enterprises, government regulation sector and public. Regulation of the nuclear power industry is seen as a principal-agent problem here under the incomplete information. Through the establishment of the game model, this paper designs a contract to improve the safe operations level and the environment protection effort of the nuclear power enterprises. Combined with the game model, this paper analyzes the cases of Fukushima accident and Three Mile Island accident, then further to give policy recommendations.