Abstract: In the process of privatization reform in urban wastewater treatment industry, lots of non-state-owned enterprises enter this industry. It makes the government face a new problem: under the situation of existing enterprises with different ownerships, how does the government set relative uniform and rational price to pay wastewater treatment enterprises in certain regions, thus creating a fair competition system for all enterprises with different ownerships in the industry? This article discusses the characteristics of the natural monopoly and regional monopoly in this industry briefly, analyzes the potential competition possibility in the same region and among different regions, and discusses the theory of comparative competition and its application value. Finally, this article discusses the principles of the incentive yardstick price and the application issues in wastewater treatment industry.
Keywords: Urban Wastewater Treatment, Comparative Competition, Yardstick Price, Regulatory Policy
source:Finance & Trade Economics ,No.3,2013