Energy Prices, Subsidies and Resource Tax Reform in China

33 Pages Posted: 27 Aug 2014

See all articles by ZhongXiang Zhang

ZhongXiang Zhang

Tianjin University - Ma Yinchu School of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: August 26, 2014

Abstract

The Chinese leadership in November 2013 determined to embark upon a new wave of comprehensive reforms in China. This is clearly reflected by the key decision of the Third Plenum of the 18th Central Committee of Communist Party of China to assign the market a decisive role in allocating resources. To have the market to play that role, getting the energy prices right is crucial because it sends clear signals to both producers and consumers of energy. While the overall trend of China’s energy pricing reform since 1984 has been moving away from the pricing completely set by the central government in the centrally planned economy towards a more market-oriented pricing mechanism, the pace and scale of the reform differ across energy types. This paper discusses the evolution of price reforms for coal, petroleum products, natural gas and electricity in China, provides some analysis of these energy price reforms, and suggests few areas of reforms could take place in order to have the market to play a decisive role in allocating resources and to help China’s transition to a low-carbon economy.

Keywords: Energy Prices, Tiered Prices, Differentiated Tariffs, Subsidies, Coal, Electricity, Natural Gas, Petroleum Products, Resource Taxes, Desulfurization and Denitrification, State-Owned Enterprises, China

JEL Classification: H23, H71, O13, O53, P2Q41, Q43, Q48, Q53, Q58

Suggested Citation

Zhang, ZhongXiang, Energy Prices, Subsidies and Resource Tax Reform in China (August 26, 2014). FEEM Working Paper No. 072.2014. Available at SSRN: https://ssrn.com/abstract=2487105 or http://dx.doi.org/10.2139/ssrn.2487105

ZhongXiang Zhang (Contact Author)

Tianjin University - Ma Yinchu School of Economics ( email )

92 Weijin Road, Nankai District
Tianjin 300072
China
+86 22 87370560 (Phone)

HOME PAGE: http://ideas.repec.org/f/pzh243.html

Register to save articles to
your library

Register

Paper statistics

Downloads
78
Abstract Views
506
rank
259,994
PlumX Metrics