Electricity Restructuring in China: The Elusive Quest for Competition

33 Pages Posted: 29 Apr 2008

See all articles by Russell W. Pittman

Russell W. Pittman

U.S. Department of Justice - Economic Analysis Group; Kyiv School of Economics; New Economic School (NES)

Vanessa Yanhua Zhang

Global Economics Group, LLC; Renmin University of China

Date Written: April 2008

Abstract

The continuation of China's remarkable economic growth will depend on continued increases in electricity supply. China has commenced a program of electricity sector restructuring, with the announced aim of relying on markets and competition to provide incentives for attracting private investment and encouraging efficiency. However, a close examination of the generation markets being created suggests that truly free wholesale prices are likely to be both high and volatile. This may be the reason that these prices have not yet been freed - and it may not bode well for true market liberalization in the future.

Keywords: electricity restructuring, competition, China

JEL Classification: L94, O13, P28, Q48

Suggested Citation

Pittman, Russell and Zhang, Vanessa Yanhua, Electricity Restructuring in China: The Elusive Quest for Competition (April 2008). Available at SSRN: https://ssrn.com/abstract=1126357 or http://dx.doi.org/10.2139/ssrn.1126357

Russell Pittman (Contact Author)

U.S. Department of Justice - Economic Analysis Group ( email )

450 5th St. NW
Antitrust Division
Washington, DC 20530
United States
202-307-6367 (Phone)
202-307-3372 (Fax)

Kyiv School of Economics ( email )

vul. Yakira, 13, 3d floor, suite 334
Kyiv, 04119
Ukraine

New Economic School (NES) ( email )

100A Novaya Street
Moscow, Skolkovo 143026
Russia

Vanessa Yanhua Zhang

Global Economics Group, LLC ( email )

1400 S. Dearborn, Suite 1000
Chicago, IL 60603
United States

Renmin University of China ( email )

Room B906
Xianjin Building
Beijing, Beijing 100872
China

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