Impact of Energy Market Distortions on the Productivity of Energy Enterprises in China

Weijian Du, Mengjie Li, Ke Li, and Jiang Lin

The Energy Journal, 2021, vol. Volume 42, issue Number 4

Abstract: China aims to enhance its total factor productivity (TFP) to achieve sustainable development. However, the looming energy market reform and its accompanying energy distortions prevent the realization of this ambitious goal. This study first establishes a theoretical model to reveal the inhibitory effects of energy market distortions on the TFP of energy enterprises, and we examine this issue using the micro-data of Chinese energy enterprises. The empirical results indicate that relative distortions among energy enterprises and overall distortions in different regions significantly inhibit the promotion of energy enterprises TFP, but the marginal inhibitory effects are diminishing. Energy market distortions also inhibit enterprises' entry and accelerate enterprises' exit from the energy market. Thus, eliminating inappropriate interventions in micro-energy enterprises, establishing a unified national energy market, and improving the competitive environment of energy companies are of great theoretical and policy importance.

JEL-codes: O13 O47 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.iaee.org/en/publications/ejarticle.aspx?id=3709 (text/html)
Access to full text is restricted to IAEE members and subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aen:journl:ej42-4-li

Ordering information: This journal article can be ordered from
http://www.iaee.org/en/publications/ejsearch.aspx

Access Statistics for this article

More articles in The Energy Journal from International Association for Energy Economics Contact information at EDIRC.
Bibliographic data for series maintained by David Williams ().