The Role of Cross-Subsidy in Shaping Electricity Prices in China
Abstract
This study examines the role of cross-subsidy in shaping electricity prices in China, highlighting the mechanisms, impacts, and implications of this practice within the country's energy sector. Cross-subsidy, where electricity tariffs for different consumer groups are adjusted to balance financial burdens, plays a crucial role in China's electricity pricing framework. The research analyzes how these subsidies are distributed among residential, industrial, and commercial sectors, and their effects on energy consumption patterns, economic efficiency, and social equity. Using a combination of quantitative data analysis and policy review, the study provides insights into the effectiveness of cross-subsidy in achieving policy goals such as energy affordability, economic development, and equitable access. Additionally, it explores the challenges and trade-offs associated with cross-subsidy, including its impact on investment in the energy sector and its implications for long-term sustainability. The findings offer valuable perspectives for policymakers, industry stakeholders, and researchers interested in understanding and optimizing electricity pricing strategies in China.
Keywords
Cross-subsidy, electricity pricing, China, energy policy, tariff structureHow to Cite
Downloads
References
Zeng M, Yang Y, Wang L, et al. The power industry reform in China 2015: Policies, evaluations and solutions[J]. Renewable and Sustainable Energy Reviews, 2016, 57: 94-110.
Pingkuo Liu, Zhongfu Tan. How to develop distributed generation in China: in the context of the reformation of electric power system[J]. Renewable and Sustainable Energy Reviews, 2016, 66: 10-26.
Zhou K, Yang S. Demand side management in China: The context of China’s power industry reform[J]. Renewable and Sustainable Energy Reviews, 2015, 47: 954-965.
Burke P J, Abayasekara A. The price elasticity of electricity demand in the United States: A three-dimensional analysis[J]. The Energy Journal, 2018, 39(2).
Liu H H, Zhang Z X, Chen Z M, et al. The impact of China's electricity price deregulation on coal and power industries: Two-stage game modeling[J]. Energy Policy, 2019, 134:110957.
Guo S, Zhao H, Li C, et al. Significant Factors Influencing Rural Residents’ Well-Being with Regard to Electricity Consumption: An Empirical Analysis in China[J]. Sustainability, 2016, 8(11): 1132.
Bhattacharyya R, Ganguly A. Cross subsidy removal in electricity pricing in India[J]. Energy policy, 2017, 100:181-190.
Wang X, Lin B. Electricity subsidy reform in China[J]. Energy & Environment, 2017, 28(3): 245-262.
Copyright (c) 2024 Zhao Peiyan, Li Wang, Lingrui Meng, Yang Liu (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain the copyright of their manuscripts, and all Open Access articles are disseminated under the terms of the Creative Commons Attribution License 4.0 (CC-BY), which licenses unrestricted use, distribution, and reproduction in any medium, provided that the original work is appropriately cited. The use of general descriptive names, trade names, trademarks, and so forth in this publication, even if not specifically identified, does not imply that these names are not protected by the relevant laws and regulations.
