IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v51y2015i4p812-825.html
   My bibliography  Save this article

The Effect of China’s Natural Gas Pricing Reform

Author

Listed:
  • Boqiang Lin
  • Chang Liu
  • Lei Lin

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.

Suggested Citation

  • Boqiang Lin & Chang Liu & Lei Lin, 2015. "The Effect of China’s Natural Gas Pricing Reform," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(4), pages 812-825, July.
    • Handle: RePEc:mes:emfitr:v:51:y:2015:i:4:p:812-825
    DOI: 10.1080/1540496X.2015.1043791
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2015.1043791
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2015.1043791?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Chang & Lin, Boqiang, 2018. "Analysis of the changes in the scale of natural gas subsidy in China and its decomposition factors," Energy Economics, Elsevier, vol. 70(C), pages 37-44.
    2. Lin, Boqiang & Xu, Mengmeng, 2019. "Good subsidies or bad subsidies? Evidence from low-carbon transition in China's metallurgical industry," Energy Economics, Elsevier, vol. 83(C), pages 52-60.
    3. Boute, Anatole & Fang, Mandy Meng, 2022. "China's textbook approach to regulatory reform of the natural gas market," Utilities Policy, Elsevier, vol. 76(C).
    4. Rioux, Bertrand & Galkin, Philipp & Murphy, Frederic & Feijoo, Felipe & Pierru, Axel & Malov, Artem & Li, Yan & Wu, Kang, 2019. "The economic impact of price controls on China's natural gas supply chain," Energy Economics, Elsevier, vol. 80(C), pages 394-410.
    5. Lin, Boqiang & Kuang, Yunming, 2020. "Natural gas subsidies in the industrial sector in China: National and regional perspectives," Applied Energy, Elsevier, vol. 260(C).
    6. Li, Jianglong & Sun, Chuanwang, 2018. "Towards a low carbon economy by removing fossil fuel subsidies?," China Economic Review, Elsevier, vol. 50(C), pages 17-33.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:51:y:2015:i:4:p:812-825. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.