Heat tariff and subsidy in China based on heat cost analysis

Jing Lin and Boqiang Lin ()

Energy Economics, 2018, vol. 71, issue C, 411-420

Abstract: This paper addresses an important issue surrounding heating supply system reform and seeks to evaluate China's heat tariff and heating subsidy from the perspective of the heating cost in the thermoelectric industry in various provinces in China. We present an algorithm for estimating environmental externality included heat tariff based on the analysis of heat cost in total thermoelectric cost. The results show that during 1999–2014 the average proportion of heating cost in total thermoelectric cost in the north is higher than in the south, which is 26.3% and 24.1% respectively. Generally, subsidies hidden in the existing heat tariffs subsidize heat consumers. Specifically, hidden subsidies subsidize residential consumer more than non-residential consumer in China.

Keywords: Heating cost; Heat tariff; Heating subsidy; Shadow price; Output distance function (search for similar items in EconPapers)
JEL-codes: C51 C60 C67 D61 O25 P18 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:71:y:2018:i:c:p:411-420

DOI: 10.1016/j.eneco.2018.03.012

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