Examining Economic and Environmental Impacts of Differentiated Pricing on the Energy-Intensive Industries in China: Input-Output Approach
Publication: Journal of Energy Engineering
Volume 137, Issue 3
Abstract
As the energy supply shortage and environmental pollution have increasingly become the major obstacles to China’s economic development, the Chinese government has proposed various policies to reduce energy consumption, one of which is to implement a differentiated electric power price scheme (DEPP) on the energy-intensive industries (EIs). Although it is only imposed on EIs, its indirect impact on other sectors or national economy could be profound. This paper applies an input-output (IO) model, which composes 42 sectors calibrated with data in 2002 to examine the potential impact of DEPP. The results show that DEPP would result in significant energy savings at the expense of declines in gross domestic product (GDP) and increases in consumer price index (CPI). The ancillary benefits include reduction of emissions from the energy-intensive sector.
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Acknowledgments
This paper is supported by the Chinese National Natural Science Foundation (UNSPECIFIED71071053) and the Chinese Fundamental Research Funds for the Central Universities (UNSPECIFIED09QX68).
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Published In
Journal of Energy Engineering
Volume 137 • Issue 3 • September 2011
Pages: 130 - 137
Copyright
© 2011 American Society of Civil Engineers.
History
Received: May 15, 2009
Accepted: Oct 22, 2010
Published online: Aug 15, 2011
Published in print: Sep 1, 2011
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