Shanxi Water Regulation Analysis

Water is indispensable important resources to human survival and development,and also the lifeblood of urban construction and social progress.Tap water industry is one of the most important infrastructure to economic development,and an important part of urbanization.The supply of tap water is of great significance to the quality of people's life and sustainable development of social.Because of the public welfare and the natural monopoly,tap water industry is on the government regulation all around the world,In the 1970 s,the western developed countries carry out the regulatory reform movement which core is relax regulation,set up efficient and orderly system of regulations.Due to the special history,tap water regulation has been a kind of the backwardness of the administrative monopoly since the founding in China.Shanxi Tap water industry,as a traditional industry,is under the influence of planned economy,has long been regarded as public welfare undertakings.Shanxi tap water industry is under the single government monopoly investment,low water price,high subsidies mode,low efficiency,serious burden,which has caused the inefficiency.So tap water industry has beco me the city's short board to economic development.With the speeding up of economic development and the deepening of urbanization level,the shortage of water resources in Shanxi Province has been severe,the government regulatory reform requirements for water industry is becoming more and more urgent.At this stage,the market economic system has been preliminarily established across the country,and gradually mature,orderly,Shanxi's industries have experienced the change and the baptism in the background of economic system reform,it is correct that market economy brings S hanxi's economic and social comprehensive influence,for the water industry,S hanxi has gradually liberalized the market,and attract investment and technology through various forms of competition,endeavor to realize the diversity of the market,so as to improve the efficiency of water industry development and people's living standards.Based on the economic characteristics of the water industry and the double monopoly market structure,this paper analyzes the necessity of regulation of the tap water industry and analyzes several commonly used incentive regulation methods.,and on this basis perform empirical research to the rules of water industry in S hanxi,and perform the further analysis about the present situation of tap water industry development and the status of the regulation with the examples of Jinzhong city of Shanxi,points out that the strict regulation of administrative monopoly of tap water industry in S hanxi impedes the introduction of competition and investment,and the A-J effect lead by yields on regulation also leads to the ineffic iency of tap water industry in Shanxi.By building volume indicators and efficiency indicators,this article do the empirical test about the efficiency of entry regulation and price regulation of the Shanxi water industry,this article found that practiced franchise regulation and yields on regulation has a negative influence on the total production and cost in tap water industry in Shanxi commonly,proved that the regulation of tap water in Shanxi Province is failure.On this basis reshape the mode of Shanxi tap water regulation,pointed out that government should separate government functions from enterprise management,set up independent and efficient enterprise,reorganize market structure of the water industry through the different business spin-off and implement different operation mode of regulation,so as to realize the effective competition,combined the price ceiling and yardstick competition in price to achieve enterprise incentive,and promote the application of Stepwise metering water price and the classification of water supply,regulating the price hearing procedure,explore the tap water regulation system that is suitable for S hanxi economic system reform and meet the requirements of the urbanization process,so as to provide certain reference for practice and theory of the regulation of water industry in Shanxi.