The state-owned energy enterprise, in essence, is a kind of contractual arrangement. In order to maximize national interests, the state delegates executives to operate business in the energy sector by combining energy resources with other resources through a series of contracts. Yet the features of state-owned energy enterprises, such as monopoly, negative externalities, strong asset specificity and high opportunism risks, could give rise to some negative impacts. So, in order to avoid negative impacts, improve governance efficiency and achieve harmony between man and nature, we should improve government regulation system, establish a more efficient board, implement a reasonable operator incentive system, and revise the supervision and constraint mechanisms. © 2011 Published by Elsevier Ltd.
Liu, H., & Wang, X. (2011). The nature, features and governance of state-owned energy enterprises. In Energy Procedia (Vol. 5, pp. 713–718). Elsevier Ltd. https://doi.org/10.1016/j.egypro.2011.03.126