Thursday, February 5, 2009

homework 4

http://www.nytimes.com/2008/01/24/business/worldbusiness/24power.html?_r=2&scp=9&sq=price%20controls&st=cse

social perspective


This article discusses a new Chinese “notice” to power generators, railways and coal industry to address a shortage. This “notice” relates to the whole Chinese families, because from the article I know that the electricity factories will shut down once or twice each week, which causes electricity is rationed to the families. I think one consequence is that due to high air-condition use during summer, some families will not get electricity for air-condition, so that they will suffer hot air and feel uncomfortable, that is to say people need electricity factory provide enough electricity for local family’s use, which means this new “notice” should be inefficient.

Another issue from the article is that Chinese central government do not allow local government charge tariff to the customers. I think this is unreasonable because the local power factories will suffer more debt so that it is difficult for them to run longer, which will cause them collapse and local people will not get power. Some factories may violate the “notice”; they may not shut down each week. To do this, they may use “special” way, which may cause corruption.

2 comments:

  1. Excellent job! Reasonable and thoughtful.

    ReplyDelete
  2. nice work,it gives me a really explaination why you pick social perspective.

    ReplyDelete