Economic and Efficiency Analysis of China Electricity Market Reform Using Computable General Equilibrium Model

2019-01-11
Economic and Efficiency Analysis of China Electricity Market Reform Using Computable General Equilibrium Model
Authors:Jieting Yin Qingyou Yan Kaijie Lei

Abstract

 

China’s electricity industry has been undergoing a process of regulatory reform. This study aims to analyse the impact of liberalization on the electricity market assuming different degrees of scope of the reforms by applying a computable general equilibrium (CGE) model. In this paper, we consider the three sub-sectors of the electricity industry, namely generation, transmission and distribution. We assume that the reform will phase out the entry barriers on the generation side and allow for competition on the distribution side, while keeping the transmission side under regulation. The results showed that the reform could enhance efficiency in the electricity sector and reduce energy prices for households. Introduction of a complete competition model would decrease welfare by 5.394 billion yuan, if contrasted to a limited competition model. The composite energy price would decline under both scenarios, whereas the quantity of energy consumed by the households would go up. This research, thus, contributes to literature on the economic effects of China’s electric power
market reform, and can be used as a case study to support policy decisions for the decision-makers.

 

Yin, J.; Yan, Q.; Lei, K.; Baležentis, T.; Streimikiene, D. 2019. Economic and Efficiency Analysis of China Electricity Market Reform Using Computable General Equilibrium Model. Sustainability. Vol. 11, Issue 2, 350; EISSN 2071-1050; doi:10.3390/su11020350; [AGORA (FAO); AGRICOLA (National Agricultural Library) ; AGRIS - Agricultural Sciences and Technology (FAO) ; Animal Science Database (CABI) ; CAB Abstracts (CABI) ; Chemical Abstracts (ACS); Current Contents - Agriculture, Biology & Environmental Sciences (Clarivate Analytics); Current Contents - Social & Behavioral Sciences (Clarivate Analytics); DOAJ - Directory of Open Access Journals; EconPapers (RePEc); FSTA - Food Science and Technology Abstracts (IFIS); Genamics JournalSeek; GeoBase (Elsevier); Global Health (CABI); HINARI (WHO); IDEAS (RePEc); Inspec (IET); Journal Citation Reports / Science Edition (Clarivate Analytics); Journal Citation Reports / Social Science Edition (Clarivate Analytics); RePEc; Review of Agricultural Entomology (CABI); Science Citation Index Expanded - Web of Science (Clarivate Analytics); Scopus (Elsevier); Social Sciences Citation Index - Web of Science (Clarivate Analytics); Web of Science (Clarivate Analytics)].

 

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