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Residential natural gas price affordability analysis–A case study of Beijing

Author

Listed:
  • He, Y.X.
  • Xia, T.
  • Liu, Y.Y.
  • Zhou, L.F.
  • Zhou, B.

Abstract

In recent years, the demand for natural gas has shown strong growth in China. However, the relative lack of domestic natural gas resources and dependence on gas imports have resulted in rising natural gas prices. In order to ensure market order, the natural gas pricing mechanism must be closely linked to customer affordability. The objective of this paper is to analyse natural gas prices’ economic and psychological affordability for Beijing's residents by the income-expenditure elasticity model and the equivalent heating value method, and further to evaluate the comprehensive affordability of the natural gas price by the small-taking and interval-number methods. Finally, it provides some suggestions for the formulation of Beijing's residential natural gas prices.

Suggested Citation

  • He, Y.X. & Xia, T. & Liu, Y.Y. & Zhou, L.F. & Zhou, B., 2013. "Residential natural gas price affordability analysis–A case study of Beijing," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 392-399.
    • Handle: RePEc:eee:rensus:v:28:y:2013:i:c:p:392-399
    DOI: 10.1016/j.rser.2013.08.004
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    References listed on IDEAS

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    Cited by:

    1. Kuang, Yunming & Lin, Boqiang, 2021. "Performance of tiered pricing policy for residential natural gas in China: Does the income effect matter?," Applied Energy, Elsevier, vol. 304(C).
    2. Zhang, Yi & Ji, Qiang & Fan, Ying, 2018. "The price and income elasticity of China's natural gas demand: A multi-sectoral perspective," Energy Policy, Elsevier, vol. 113(C), pages 332-341.
    3. Li, Lanlan & Luo, Xuan & Zhou, Kaile & Xu, Tingting, 2018. "Evaluation of increasing block pricing for households' natural gas: A case study of Beijing, China," Energy, Elsevier, vol. 157(C), pages 162-172.
    4. Chang Liu & Boqiang Lin, 2018. "Evaluating Design of Increasing Block Tariffs for Residential Natural Gas in China: A Case Study of Henan Province," Computational Economics, Springer;Society for Computational Economics, vol. 52(4), pages 1335-1351, December.
    5. Yan, Bofeng & Xue, Song & Li, Yuanfei & Duan, Jinhui & Zeng, Ming, 2016. "Gas-fired combined cooling, heating and power (CCHP) in Beijing: A techno-economic analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 63(C), pages 118-131.

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