Rationality of Natural Gas Prices and the Determining Factors in China

Chai, Jian; Liang, Ting; Zhang, Zhe George; Kong, Sophie X.; Liu, Zenghui

doi:10.1080/1540496x.2018.1471596

Cited by 7 publications

(3 citation statements)

References 29 publications

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“…Second, total cost in the monopoly market is lower than that in the competitive market for the same target output of PPG and technological progress. The main reason is that in the monopoly market of China, the price is fixed under control of Chinese government, which means it is exogenous and determined by the government rather than the market [58]. Hence, the monopolist cannot make monopoly profits through price setting.…”

Section: Discussionmentioning

confidence: 99%

A game‐theory analysis of the subsidy withdrawal policy for China's photovoltaic power generation industry

Wang

Geng

et al. 2021

IET Renewable Power Gen

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Over the past decade, the feed-in-tariff (FIT) subsidy policy of China has driven rapid growth in the photovoltaic power generation (PPG) industry. China now boasts the largest installed capacity of PPG around the world. However, the policy-driven expansion of the PPG industry has not brought about a simultaneous improvement in quality. PPG costs remain high and it is difficult to sustain PPG competitiveness. Therefore, it is imperative to gradually withdraw from the implementation of photovoltaic subsidies. Using a game theory approach, this study investigates the impact of subsidy exit policy on China's PPG industry. The results show that stimulating research and development (R&D) can be difficult under current uncertain subsidy withdrawal plan. The government should announce the plan of subsidy reduction with clear adjustment as well as corresponding effective dates. In addition, under the condition of government-controlled prices, the social welfare of the monopoly market is higher than that in the competitive market. In order to achieve the same technological progress and target output, the total cost (including enterprise cost and government expenditure) in competitive market is higher than that in monopoly market, which is caused by repeated R&D investment and technical cost. Technical cooperation could lower costs and increase profits, and is therefore recommended.This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

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Section: Discussionmentioning

confidence: 99%

A game‐theory analysis of the subsidy withdrawal policy for China's photovoltaic power generation industry

Wang

Geng

et al. 2021

IET Renewable Power Gen

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“…The choice of variables for this econometric analysis is comprehensive as it encompasses the diverse fundamental drivers of natural gas prices both on the demand and supply side. The variables used in this paper have been well studied and documented in the energy economics literature (see for examples [2,[10][11][12][13]). Variables such as exchange rates are not applicable to the U.S. market it is a net exporter of natural gas.…”

Section: Data Descriptionmentioning

confidence: 99%

Perspective Chapter: DETERMINANTS OF NATURAL GAS PRICES IN THE UNITED STATES – A STRUCTURAL VAR APPROACH

Domfeh

2023

Research Advances in Syngas

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This study examines the dynamic economic relationships between the fundamental variables that influence natural gas prices within the U.S. market. A structural vector auto-regressive (VAR) and Markov switching models were used to investigate the impact and stability of regime switches between the main drivers of natural gas prices. The result reveals that the U.S. gas market market is sensitive to temperature deviations in the short term. Crude oil and coal prices have long-run effects on natural gas prices, emphasizing energy-specific demand shocks. Mainly, coal prices determine about 73% of gas price variability for the sample period with three discernible regime switches.

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“…In addition, the Measures for the Administration of Natural Gas Pipeline Transportation Prices stipulate that national pipeline network groups should separate their pipeline transportation business from other businesses. In recent years, electricity and natural gas prices have been reformed along the same lines, transport services have been controlled, and the purchase and sale of resources have been liberalized [19,20].…”

Section: Model Development 221 Theoretical Foundation Of the Wpmmentioning

confidence: 99%

Novel Water Pricing Model for Water Network Projects: A Case Study of Jiaodong Water Diversion Project in China

Huang,

Liu,

Niu

et al. 2023

Water

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The uneven distribution of water resources in time and space restricts the development of society, which is a universal problem facing the world. To improve the ability to regulate water resources in water diversion projects and alleviate the contradiction between water resources and social development, China has decided to build water network projects (WNPs). A WNP is an integrated water supply system that includes multiple water sources and network water supply lines and integrates the functions of water supply, water delivery, and optimal allocation of water resources into a system that can supply water to many users. An appropriate water pricing mechanism is the key to ensuring the sustainable operation of water network projects. This paper presents a comprehensive water pricing model (WPM) for WNPs. The purpose of this model is to unify the water price measurement standard of WNPs and lay the foundation for water price marketization in the future. By applying the model to the Jiaodong WNP, it is found that the model is expected to improve the unbalanced use of water sources and the large difference in prices at water supply points (WSPs) in the project. This study not only provides a theoretical basis for water pricing reform but also has great potential to improve the efficiency of water resource use.

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Rationality of Natural Gas Prices and the Determining Factors in China

Cited by 7 publications

References 29 publications

A game‐theory analysis of the subsidy withdrawal policy for China's photovoltaic power generation industry

A game‐theory analysis of the subsidy withdrawal policy for China's photovoltaic power generation industry

Perspective Chapter: DETERMINANTS OF NATURAL GAS PRICES IN THE UNITED STATES – A STRUCTURAL VAR APPROACH

Novel Water Pricing Model for Water Network Projects: A Case Study of Jiaodong Water Diversion Project in China

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