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Electricity pricing in China and the role of the State

John Beirne, Guy Liu () and Liang Zhang ()
Additional contact information
Guy Liu: Brunel University
Liang Zhang: Brunel University

Economics Bulletin, 2012, vol. 32, issue 1, 466-474

Abstract: Theoretical and empirical evidence is presented to show that inefficient power firms in China are subsidised by the state through the ability to charge high electricity prices and the creation of a “soft price constraint” on costs. This cost inefficiency challenges the merits of planned power supply.

Keywords: planned supply of power; electricity industry; pricing behaviour; soft price constraint; China's enterprise reform (search for similar items in EconPapers)
JEL-codes: L2 Q4 (search for similar items in EconPapers)
Date: 2012-01-30
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