Does energy-price regulation benefit China's economy and environment? Evidence from energy-price distortions

Ju, Keyi; Su, Bin; Zhou, Dequn; Wu, Junmin

doi:10.1016/j.enpol.2017.02.031

Cited by 90 publications

(30 citation statements)

References 20 publications

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“…In recent years, spatial econometrics have been widely applied to various fields of study, such as innovation spillover, environmental protection and smog management (Cai, 2015;Pi and Chen, 2016;Ju et al, 2017), but have rarely been used in studies of price distortion. In fact, price distortion of construction land has a significant spatial transfer effect as well as spillover effects during regional competition, making it a new area of application in spatial econometrics.…”

Section: Introductionmentioning

confidence: 99%

Regional Competition in China under the Price Distortion of Construction Land: A Study Based on a Two‐regime Spatial Durbin Model

Liu

Geng

2019

China and World Economy

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This study examines regional competition in China by considering the spatial correlation and spillover effect of construction land price distortion using a two-regime Spatial Durbin Model to investigate the patterns and trends of the competition between 285 cities in China from 2006 to 2015. The study finds: (i) price distortion of construction land is a common phenomenon but the distortion index generally shows a declining trend; (ii) regional competition through construction land price distortion shows a weakly intensified pattern, although the competition patterns in the four regions of China varied; and (iii) the intensity of competition between regions was lower during the 12thFive-year Plan compared to the 11th Plan. The intensity of competition between cities was also lower inside than outside urban agglomerations. These results provide policy implications for remedying the price distortion of construction land and promoting regional coordinated development.

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Section: Introductionmentioning

confidence: 99%

Regional Competition in China under the Price Distortion of Construction Land: A Study Based on a Two‐regime Spatial Durbin Model

Liu

Geng

2019

China and World Economy

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“…However, it is believed that both WPICO and WPIEL are exogenous variables for biomass energy consumption in rural China. For one thing, energy prices have been regulated at a lower level by the Chinese government for a long time, especially the electricity price, and the potential reasons are reducing the fast-growing input cost for producers, easing inflation pressures for consumers, and achieving social equity objectives, rather than reflecting the real energy demand of the market or the energy production costs [115,123,124]. Consequently, the impact of the endogeneity problem led by energy prices in rural China is not as great as that in other countries [54].…”

Section: Further Discussion On Robustness and Endogeneitymentioning

confidence: 99%

Determinants of the Behavioral Lock-in of Rural Residents’ Direct Biomass Energy Consumption in China

Han

2019

Sustainability

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The transition from traditional to modern energy is widely accepted as a critical facilitator of improved health, social, and livelihood outcomes, but over three quarters of China’s rural population are still persisting with traditional energy practices. Using panel data on 28 provinces during 1991–2014, this paper investigates how institutional pressure, status quo inertia, and the allure of power and control affect rural residents’ direct biomass energy consumption (RRDBEC) in China. The empirical results show that: (1) the institutional pressure of the number of staff in rural energy administrative agencies facilitates the lock-in of RRDBEC, but government funding on rural energy development has an opposite impact; (2) status quo inertia, depicted by the lagged term of planting proportion of grain and the expenditure proportion of meat, is verified to lock RRDBEC; (3) the allure of power and control, depicted by the lagged term of ownership of firewood-saving stoves, strengthens the lock-in of RRDBEC; (4) income level, education level, and dependency ratio are verified as significant and negative determinants of RRDBEC, while fuel prices lock RRDBEC. Therefore, the policy implications include transforming the functions of rural energy administrative agencies, increasing government funds, carrying out public education of health and environment awareness, and providing economic incentives.

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“…However, it is believed that energy price is an exogenous variable for agricultural consumption because, although the energy market in China is not a perfectly competitive market, its agricultural producers can be treated as price-takers. From the perspective of agricultural electricity, its price have been regulated at a lower level and is not allowed to adjust quickly [102,125]. Power plants in China face market-oriented prices for their inputs, mainly coal, while their output needs to follow the mandatory price.…”

Section: Further Discussionmentioning

confidence: 99%

“…While the prices of coal, gasoline, and diesel adjust according to changes in the international fossil fuels prices to a certain degree and are more market-oriented when compared to electricity price, Chinese government still regulates those prices [102]. Those measures aim to reduce the fast-growing input cost for farmers and support the development of rural economy [126].…”

Section: Further Discussionmentioning

confidence: 99%

“…The price elasticity of energy demand is generally negative, which has been proved appropriate in explaining China's aggregate energy intensity [59,67,92]. However, the normal function of price mechanism bases on complete marketization, while China's energy system is not fully market-oriented, and the long-term energy-price regulation has resulted in energy-price distortion [102]. For instance, the results of [100,101] have shown that the price mechanism functions poorly in China's rural residential energy transition.…”

Section: Data and Descriptive Statisticsmentioning

confidence: 99%

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Structural Change and Its Impact on the Energy Intensity of Agricultural Sector in China

Han

2018

Sustainability

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China’s agricultural structure has undergone significant changes for the past four decades, mainly presenting as the fall of sown proportion of grain crops and the rise of vegetables, as has its energy consumption. Employing the panel data on 30 provinces during 1991–2016, this paper empirically explores the impact of agricultural structure changes (ASC) on the energy intensity of agricultural production (EIAP), direct energy intensity of agricultural production (DEIAP) and indirect energy intensity of agricultural production (IEIAP) in China. Besides, the regional heterogeneity of such impact is examined. The results show that: (1) ASC increases EIAP and IEIAP significantly, while ASC decreases DEIAP, which is explained by the structural effect and different planting modes of different crops; (2) the impact in the three administrative regions is similar to national situation, except the impact of ASC on DEIAP in the West Region, which is explained by regional differences of vegetable mechanization; (3) the result of the six vegetable production regions reveals greater regional heterogeneity, and this is attributed to the scale economy effect and the incremental effect of vegetable mechanization; and (4) fuel price, income, agricultural labor, old dependency ratio, and fiscal expenditure have different but significant impacts on EIAP, DEIAP, and IEIAP. Finally, some policy implications are given.

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Does energy-price regulation benefit China's economy and environment? Evidence from energy-price distortions

Cited by 90 publications

References 20 publications

Regional Competition in China under the Price Distortion of Construction Land: A Study Based on a Two‐regime Spatial Durbin Model

Regional Competition in China under the Price Distortion of Construction Land: A Study Based on a Two‐regime Spatial Durbin Model

Determinants of the Behavioral Lock-in of Rural Residents’ Direct Biomass Energy Consumption in China

Structural Change and Its Impact on the Energy Intensity of Agricultural Sector in China

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