 Reforming residential electricity tariff in China: Block tariffs pricing approachChuanwang Sun and Boqiang Lin () Energy Policy, 2013, vol. 60, issue C, 741-752 Abstract: The Chinese households that make up approximately a quarter of world households are facing a residential power tariff reform in which a rising block tariff structure will be implemented, and this tariff mechanism is widely used around the world. The basic principle of the structure is to assign a higher price for higher income consumers with low price elasticity of power demand. To capture the non-linear effects of price and income on elasticities, we set up a translog demand model. The empirical findings indicate that the higher income consumers are less sensitive than those with lower income to price changes. We further put forward three proposals of Chinese residential electricity tariffs. Compared to a flat tariff, the reasonable block tariff structure generates more efficient allocation of cross-subsidies, better incentives for raising the efficiency of electricity usage and reducing emissions from power generation, which also supports the living standards of low income households. Keywords: Block tariffs; Residential electricity; Price elasticity of power demand (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:60:y:2013:i:c:p:741-752 DOI: 10.1016/j.enpol.2013.05.023 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
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