 Principles, effects and problems of differential power pricing policy for energy intensive industries in ChinaBoqiang Lin () and Jianghua Liu Energy, 2011, vol. 36, issue 1, 111-118 Abstract: The Chinese government canceled the preferential power pricing policies for energy intensive industries and imposed a reverse differential pricing policy in order to promote energy efficiency and the adjustment and upgrading of the industrial structure. This article analyzes the principles of China’s differential power pricing policy, the externalities of energy and the modified Ramsey pricing rule, and also points out the policy implications of China’s differential power pricing policy. In our samples, we investigate eight power intensive products in the Henan province with respect to their power consumption per unit (power intensity), electricity cost, total cost, the electricity tariff and profit, in order to test the effects of the differential power pricing policy. The results show that the primary effect of the differential power pricing policy is that enterprises decrease their total costs and improve their productive efficiencies in advance, in anticipating a higher electricity tariff. Keywords: Differential power pricing policy; Ramsey pricing; Energy intensive industries; Henan province (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:energy:v:36:y:2011:i:1:p:111-118 DOI: 10.1016/j.energy.2010.11.001 Access Statistics for this article Energy is currently edited by Henrik Lund and Mark J. Kaiser More articles in Energy from Elsevier |
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