Low-carbon-oriented dynamic optimization of residential energy pricing in China

He, Yongxiu; Liu, Yangyang; Wang, Jianhui; Xia, Tian; Zhao, Yong

doi:10.1016/j.energy.2014.01.051

Cited by 28 publications

(8 citation statements)

References 24 publications

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“…A Chinese case study concludes that energy price distortions impede the improvement of energy consumption structures (Liu and Li, 2011). He et al (2014) proved that competitive, electricity market prices could achieve energy savings and simultaneously, have a positive impact on social welfare. Studies on the macroeconomic impact of energy subsidies often use CGE models and demonstrate that subsidies have a negative impact on economic growth, employment, and social welfare (Bhattacharya and Kojima, 2010;Wu et al, 2012).…”

Section: Introductionmentioning

confidence: 99%

Energy price, regulatory price distortion and economic growth: A case study of China

2017

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Energy prices are often distorted by government control, which is usually justified on the grounds that such control will help mitigate the negative impact of price volatility from oil imports, and thus positively affect the domestic economy. In this paper, we show in a two-sector growth model, that regulatory price distortion can negatively affect the economy, and then, based on the model, we empirically estimate the impact of the price distortion on output growth in China, using monthly, time series data from 2005M1 to 2012M12. In contrast to the usual argument for regulatory control to mitigate price volatility, we find that regulatory price distortion negatively affects output growth in China during both the short and long term, because it is robust to different measures of output and price distortion. Hence, the argument that using price regulation to protect economic growth is undermined, and subsequently, this study lends its support to energy price deregulation. A market oriented, energy price regime may improve the resilience of the domestic economy to global, oil price shocks.

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Section: Introductionmentioning

confidence: 99%

Energy price, regulatory price distortion and economic growth: A case study of China

2017

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“…For example, after implementing rising block tariff (RBT) in July 2012, China's residential electricity price become more reasonable and effective, and about 26.5% household tend to save electricity and improve electricity efficiency [13]. He et al [14] also proved that the optimization of the electricity price mechanism could achieve energy-savings and the maximum total social surplus.…”

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confidence: 98%

How does administrative pricing affect energy consumption and CO2 emissions in China?

Lin

2015

Renewable and Sustainable Energy Reviews

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“…Given the difficulty in determining the right tax rate, many scholars have set emission reduction as the target and value the adverse impacts on economic operations. There is extensive literature on emission reduction targets, and the specific duty imposed by the environmental tax is determined by emission reduction in all sectors, and each sector has different tax rates according to the different emissions [14][15][16][17][18].…”

Section: Introductionmentioning

confidence: 99%

The Impacts of Environmental Tax in China: A Dynamic Recursive Multi-Sector CGE Model

et al. 2015

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Abstract:In recent years, the accumulated environmental problems resulting from excessive usage of fossil fuels have gradually loomed. Thus, an environmental tax, as an important policy tool, has been put on the agenda in China. In this paper, a dynamic recursive multi-sector Computable General Equilibrium (CGE) model is applied to explore the impacts of the environmental tax on China's economy. To comprehensively analyze the impacts, we introduce four kinds of typical contaminants and set two kinds of scenarios: different tax rates and different tax refunds. The results show that the environmental tax is conducive to environmental improvement, but the economic variables are adversely affected, for example, the loss of GDP at the low level tax rate is 0.46%. In order to offset the negative impacts, we presume the government refunds the tax. The results show that this can indeed relieve the negative effects. When the government refunds the production tax and corporate income tax, 0.49% and 0.34% of GDP is relieved by respectively. This paper provides a comprehensive analysis of the implementation of the environmental tax in China and lays a solid foundation for the introduction of the environmental tax.

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Low-carbon-oriented dynamic optimization of residential energy pricing in China

Cited by 28 publications

References 24 publications

Energy price, regulatory price distortion and economic growth: A case study of China

Energy price, regulatory price distortion and economic growth: A case study of China

How does administrative pricing affect energy consumption and CO2 emissions in China?

The Impacts of Environmental Tax in China: A Dynamic Recursive Multi-Sector CGE Model

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