Energy Prices, Subsidies and Resource Tax Reform in China

Asia and the Pacific Policy Studies (APPS), Vol. 1, No. 3, pp. 439-454

16 Pages Posted: 2 Oct 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 22, 2014

Abstract

The Chinese leadership in November 2013 is 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. While the overall trend of China's energy pricing reform since 1984 has been moving towards a more market-oriented pricing mechanism, the pace and scale of the reform differ across energy types. This article 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 that few areas of reforms could take place in order to have the market play that decisive role and help China's transition to a low-carbon economy.

Keywords: energy prices; tiered prices; differentiated tariffs; subsidies; resource taxes

Suggested Citation

Zhang, ZhongXiang, Energy Prices, Subsidies and Resource Tax Reform in China (August 22, 2014). Asia and the Pacific Policy Studies (APPS), Vol. 1, No. 3, pp. 439-454. Available at SSRN: https://ssrn.com/abstract=2504366

ZhongXiang Zhang (Contact Author)

Tianjin University - Ma Yinchu School of Economics ( email )

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

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