Study On Incentive Regulation For Promoting Economic Performance In The Toll-Road Industry

With the gradually establish and accelerate of China’s market economy system, through the effective operation of market competition mechanism to improve the resource allocation efficiency of the industry can make a contribution to achieve the whole economy sustained and stable coordinated development is the primary goal. As China’s infrastructure industry, toll-road industry but also as a national public utility that has the nature of administrative monopoly. The industry’s economy development is closely related to the national economy. Due to the toll-road exhibits the characteristics of quasi-public goods, while in its operating and income accessing, needs government to regulate it to ensure its nice public property. However for a long time, toll-road industry’s overall operating efficiency is low and shows a status of serious loss that cannot cover the balance of payments. Based on this, the article embarks from measure the economic performance of toll-road industry, to study the implementation of incentive regulation’s research ideas and methods on toll-road industry by analyze the relationship between government regulation and economic performance.First, on the basis of research and carding the existing literature, construct the toll-road industry’s index system of evaluate operation efficiency under the “input-output” evaluation idea. Through the DEA-Malmquist model quantitative evaluation the efficiency of China’s toll-road industry and the results show that the overall economic performance of China’s toll-road is poor. Secondly, from the SCP analysis paradigm of industrial organization theory, establish a RP’-SCP analysis framework which based on government regulation、property structure、market structure、market conduct and market performance. Study and sum up the logic and causal mechanism between government regulation and economic performance.Thirdly, under the background of incentive regulation theory, drawing the reform experience of developed country’s foundation or monopoly industry and based on the regulation status quo. Presented the necessity of introduce the incentive regulation into tol-roads industry which should provide adequate incentives to industry and effectively combine the competition mechanism with regulations, in order to solve the problem of inadequate or inefficient internal competition in the industry. Finally, study on the specific way of incentive regulation implementation in toll-road. Put forward that provide effective competition in toll-road by price incentive and franchise bidding regulations. And further to the target which can promote enterprise efficiency and toll-road industry’s economic performance.