환경산업의 경쟁력 강화 방안 연구

Abstract

Policies and Strategies for Strengthening the Competitiveness of Environmental Industry: Water and Sewage Sector Abstract The water supply and sewage treatment services in Korea, which have been mainly provided by the local governments, are experiencing difficulties in obtaining proper management due to structural flaws and inefficiencies incurred in public sector management. There has been an incomplete specialization of the water service provision ever since the local governments became the main suppliers. Not only is it a difficult structure to contemplate a competitive efficiency, but also complicated to enforce proper economic and environmental regulations due to the supplier also being the regulator. Moreover, industrial policies for supplying efficient water services have been considered in limited prospects only. In order to settle these problems and plan an efficient, reasonable water service system, several issues need to be discussed: i) rationalization of scope and size of service supply and restructuring of systems to connect efficiently with water resources management, ii) separation and specialization of regulations and service provisions, institutional restructuring to establish a rational institutional structure, iii) efficiency improvement through the promotion of competition and the consolidation of governance system. This research provides industrial policies and plans to promote the growth of the water supply and sewage treatment service industry based on rational management and competitiveness. First of all, it is appropriate to examine the current trend of the global water market through its market growth and global structure, and also international issues concerning the water industry, such as the opening of environmental service markets and international standardization of water service industries. This report will further investigate the present condition and the changing trend of the domestic water supply industry in order to understand the given position of both domestic and international water service industries. A number of major issues that need to be addressed and resolved in order to uplift the competitiveness and efficiency of the water service industry are discussed in this report: ① a restructuring scheme for the water service industry, ② the establishment of an industrial governance structure and the consolidation of private sector participation systems, and ③ rational cost sharing scheme for a reasonable supply of water services. The restructuring of the water service industry should: i) be regulated within the scope and size that enables to pursue economic efficiency under the characteristic of scale economy of network utility; ii) uplift the efficiency both in the utilization and conservation of water resources, make an effort to rationalize regulations regarding the distribution of water resources and issues concerning external effects, consider mediation regarding natural limitations and technical capacities; and iii) establish a competitive structure and management system to increase the efficiency of the water service industry. Based upon such challenges, this research suggests alternatives for horizontal (regional) and vertical structures of water service industry. The reform of institutional structure of the water service industry to increase its efficiency shall be leaning towards the separation and specialization of service provision from the regulations. A number of suggestions, such as the formation of specialized (wide-area) business organizations, and an alternative structural plan for governing the water service industry with a resource-environmental regulation and an economic regulation, have all been presented. The research makes two propositions for a rational governance system of the water service industry. One of them, a performance management system, includes prices, quality control, and investment regulations. The other suggests a structure that promotes competition, deals with public sector policies, and proposes a linkage among the objectives of its regulations. Furthermore, the following items in private sector participation system have been considered as assisting the specialization of the water service industry and increasing its efficiency - a systematic establishment of water service management under private sector participation, a promotional system for private sector participation and rationalization of its procedures, a propulsive organization for the efficient promotion of private sector participation, and the establishment of a promotional strategy for the rationalization of the water service industry, including the private sector participation. This research also gives suggestions on rationalizing the cost sharing by improving the standards of cost sharing in service supplies, and differentiation structures by regions and by different user groups. The strategy for implementing the policies discussed here to enhance the competitiveness and efficiency of the water service industry includes: i) a reasonable restructuring plan for horizontal structural reform and institutional restructuring, ii) an establishment of a scheme to uplift the competitiveness and rationalization of service provision, iii) a utilization plan for foreign capital and its operating capacity, iv) lastly, a program to promote and support the overseas expansion of Korean water service industries.