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Energy Prices, Subsidies and Resource Tax Reform in China

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  • ZhongXiang Zhang
Abstract
The Chinese leadership in November 2013 is determined to embark upon a new wave of comprehensive reforms in China. This is clearly reflected by the key decision of the Third Plenum of the 18th Central Committee of Communist Party of China to assign the market a decisive role in allocating resources. To have the market to play that role, getting the energy prices right is crucial. While the overall trend of China's energy pricing reform since 1984 has been moving towards a more market-oriented pricing mechanism, the pace and scale of the reform differ across energy types. This article discusses the evolution of price reforms for coal, petroleum products, natural gas and electricity in China, provides some analysis of these energy price reforms, and suggests that few areas of reforms could take place in order to have the market play that decisive role and help China's transition to a low-carbon economy.

Suggested Citation

  • ZhongXiang Zhang, 2014. "Energy Prices, Subsidies and Resource Tax Reform in China," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 1(3), pages 439-454, September.
    • Handle: RePEc:bla:asiaps:v:1:y:2014:i:3:p:439-454
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    References listed on IDEAS

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    Cited by:

    1. Zhang, Zengkai & Zhang, Zhongxiang, 2017. "Intermediate input linkage and carbon leakage," Environment and Development Economics, Cambridge University Press, vol. 22(6), pages 725-746, December.
    2. Zhang, ZhongXiang, 2014. "Programs, Prices and Policies Towards Energy Conservation and Environmental Quality in China," Working Papers 249427, Australian National University, Centre for Climate Economics & Policy.
    3. Burke, Paul J. & Liao, Hua, 2015. "Is the price elasticity of demand for coal in China increasing?," China Economic Review, Elsevier, vol. 36(C), pages 309-322.
    4. Zhang, ZhongXiang, "undated". "Making China the transition to a low-carbon economy: Key challenges and responses," Working Papers 249516, Australian National University, Centre for Climate Economics & Policy.
    5. Yanhui Yin & Bowen Yang, 2023. "Environmental Protection or Development? Multiple Policy Effects Evaluation of the Resource Tax Collection Reform for Iron Ore Enterprises in China," IJERPH, MDPI, vol. 20(5), pages 1-15, February.
    6. Gao, Shuai & Cai, Wenjia & Liu, Wenling & Wang, Can & Zhang, ZhongXiang, 2014. "Corporate Preferences for Domestic Policy Instruments under a Sectoral Market Mechanism: A Case Study of Shanxi Province in China," Working Papers 249496, Australian National University, Centre for Climate Economics & Policy.
    7. ZhongXiang Zhang, 2017. "Are China's climate commitments in a post‐Paris agreement sufficiently ambitious?," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 8(2), March.
    8. Zuo, Na & Zhong, Hua, 2019. "The Effect of Resource Wealth on Regional Economic Development in China," 2019 Annual Meeting, July 21-23, Atlanta, Georgia 291114, Agricultural and Applied Economics Association.
    9. ZhongXiang Zhang, 2016. "The implementation of the Paris Agreement in the international and China?s context," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2016(3), pages 63-69.
    10. Zhang, ZhongXiang, 2018. "Trade and Climate Change: Focus on Carbon Leakage, Border Carbon Adjustments and WTO Consistency," Foundations and Trends(R) in Microeconomics, now publishers, vol. 12(1), pages 1-108, August.
    11. Fu, Xiaolan & Hou, Jun & Liu, Xiaohui, 2018. "Unpacking the Relationship between Outward Direct Investment and Innovation Performance: Evidence from Chinese firms," World Development, Elsevier, vol. 102(C), pages 111-123.
    12. Zhang, Shaohui & Guo, Qinxin & Smyth, Russell & Yao, Yao, 2022. "Extreme temperatures and residential electricity consumption: Evidence from Chinese households," Energy Economics, Elsevier, vol. 107(C).
    13. Zhang, Zibin & Yang, Wenxin & Ye, Jianliang, 2021. "Why sulfur dioxide emissions decline significantly from coal-fired power plants in China? Evidence from the desulfurated electricity pricing premium program," Energy Policy, Elsevier, vol. 148(PB).
    14. Guo, Jin & Zheng, Xinye & Chen, Zhan-Ming, 2016. "How does coal price drive up inflation? Reexamining the relationship between coal price and general price level in China," Energy Economics, Elsevier, vol. 57(C), pages 265-276.
    15. Chen, Qiu & Huang, Jikun & Mirzabaev, Alisher, 2022. "Does fuel price subsidy work? Household energy transition under imperfect labor market in rural China," Energy Economics, Elsevier, vol. 107(C).
    16. Zhongxiang Zhang, 2018. "Energy price reform in China," CCEP Working Papers 1805, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    17. Le Tang, 2020. "Energy prices and investment in energy efficiency: evidence from Chinese industry 1997–2004," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 34(2), pages 93-105, November.
    18. Guo, Jin & Du, Limin & Wei, Chu, 2019. "Equity-efficiency trade-off in China's energy capping policy," Energy Policy, Elsevier, vol. 126(C), pages 57-65.
    19. ZhongXiang Zhang, 2016. "Making the Transition to a Low-Carbon Economy: The Key Challenges for China," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 3(2), pages 187-202, May.
    20. Lin, Boqiang & Li, Zhensheng, 2021. "Does natural gas pricing reform establish an effective mechanism in China: A policy evaluation perspective," Applied Energy, Elsevier, vol. 282(PA).
    21. Andersson, Fredrik N.G., 2018. "Estimates of the Inflation Effect of a Global Carbon Price on Consumer, Investment, Export, and Import Prices," Working Papers 2018:22, Lund University, Department of Economics.

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    More about this item

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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