EconPapers    
Economics at your fingertips  
 

The Effect of China’s Natural Gas Pricing Reform

Boqiang Lin (bqlin@xmu.edu.cn), Chang Liu and Lei Lin

Emerging Markets Finance and Trade, 2015, vol. 51, issue 4, 812-825

Abstract: In recent years, the rapid increase in natural gas consumption and huge dependency on foreign gas have forced China to speed up the process of natural gas pricing reform. The price-gap approach is applied to estimate China’s natural gas subsidies, and the results indicate that China's natural gas subsidies increased from CNY 93.341 billion in 2010 to CNY 188.537 billion in 2012. We also apply the input-output model and find that a natural gas price increase of 10–15 percent has less effect on various price indexes than does complete removal of subsidies. Currently, China’s natural gas accounts for a relatively small proportion of the country’s primary energy consumption, and thus gas pricing reform will not have a significant negative effect on the macroeconomy. The government needs to implement fiscal policies such as direct subsidies, tiered pricing for natural gas, and city-gate price discounts to relatively underdeveloped provinces to ensure the smooth implementation of reform.

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2015.1043791 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:51:y:2015:i:4:p:812-825

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

DOI: 10.1080/1540496X.2015.1043791

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst (chris.longhurst@tandf.co.uk).

 
Page updated 2025-01-03
Handle: RePEc:mes:emfitr:v:51:y:2015:i:4:p:812-825