An empirical case study about the reform of tiered pricing for household electricity in China
Chuanwang Sun ()
Applied Energy, 2015, vol. 160, issue C, 383-389
The reform of tiered pricing for household electricity (TPHE) in China was implemented nationwide in July 2012. The main purpose of the policy is to promote reasonable resource allocation and utilization. Based on the micro household-level survey data, this paper investigates the effect of the TPHE on achieving the twin objectives of efficiency and equity respectively. Results demonstrate that under the current scheme of the TPHE, the incentives for electricity conservation are effective and the distortion of cross-subsidies in electricity tariffs in China has been reduced. However, price sensitivities of household electricity demand across different income groups are influenced by various factors. Future policy should concentrate on the design and improvement of the TPHE to establish a comprehensive pricing mechanism. Meanwhile, complementary policies should be enacted to support the TPHE, which will be helpful for further improvement of the TPHE and the establishment of other pricing mechanisms of resource-products in the residential sector.
Keywords: Tiered pricing for household electricity; Residential electricity consumption; Efficiency of energy use; Equity of cross-subsidies (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:160:y:2015:i:c:p:383-389
Ordering information: This journal article can be ordered from
http://www.elsevier. ... 405891/bibliographic
Access Statistics for this article
Applied Energy is currently edited by J. Yan
More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Haili He ().