Have market-oriented reforms improved the electricity generation efficiency of China's thermal power industry? An empirical analysis

Meng, Ming; Mander, Sarah; Zhao, Xiaoli; Niu, Dongxiao

doi:10.1016/j.energy.2016.08.054

Cited by 51 publications

(30 citation statements)

References 24 publications

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“…Since then, prices of most commodities in product market have been determined via the interaction of supply and demand freely and the product competitive market had been basically achieved. In the following step, the factor market was reformed and prices of production factors including capital, energy and land were gradually [32] evaluated how China's market-oriented reform improved the electricity generation efficiency and they found that market competition should be further introduced into China's electric power industry to improve the generation efficiency of the thermal power plants. Lin and Du (2015) [29] analyzed the impact of China's market-oriented reform on regional energy and carbon efficiency.…”

Section: China's Market-oriented Reformmentioning

confidence: 99%

The Impact of Foreign Direct Investment (FDI) on the Environment: Market Perspectives and Evidence from China

Zheng

Sheng

2017

Economies

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Foreign direct investment (FDI) may have a positive effect on the level of pollution in host countries, as described by the pollution haven hypothesis (PHH). However, this kind of effect may depend on the economic conditions in host countries. In this study, we conduct research on the FDI's effect on China's CO 2 emissions during the market-oriented reform. The results are as follows. Firstly, FDI directly promotes China's CO 2 emissions. Secondly, with market-oriented reform, this positive effect from FDI is lowering year by year, which indicates that the market-oriented reform could alleviate the positive effect of FDI on China's CO 2 emissions. Thirdly, as China's market-oriented reform was implemented gradually from experimental zones to the whole country, regional market development is uneven, and as such so is FDI's effect on local CO 2 emissions. Provinces in the eastern area generally evidenced higher market development and lower CO 2 emissions from FDI, while four provinces in west area evidenced both lower market development and higher CO 2 emissions from FDI.

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Section: China's Market-oriented Reformmentioning

confidence: 99%

The Impact of Foreign Direct Investment (FDI) on the Environment: Market Perspectives and Evidence from China

Zheng

Sheng

2017

Economies

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“…In 2018, China's installed power generation capacity was 1.90 billion kW and generated 7.11 trillion kWh, approximately accounting for 27.4% and 25.4% of the world's total, respectively [1]. Electricity generated by fossil energies has always accounted for the single largest part of the country's total, given that China has abundant coal resources and has been building a considerable amount of coal-fired power plants [2]. Since the foundation of the People's Republic, China's share of electricity generated by fossil energies has never been less than 70% [1].…”

Section: Introductionmentioning

confidence: 99%

What is Currently Driving the Growth of China’s Household Electricity Consumption? A Clustering and Decomposition Analysis

Meng

Zhou

et al. 2019

Sustainability

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The rapid growth of household electricity consumption is threatening the sustainable development of China’s economy and environment because of its impacts on the operation efficiency of the electric power system. To recognize the driving factors of the consumption growth and offer policy implications, based on the consumption-related data of 2015 and 2016, this research used the rank sum ratio (RSR) method to divide China’s 30 provinces into 5 groups and a logarithmic mean Divisia index (LMDI) algorithm to decompose the composition growth of each group into the quantitative contribution of each driving factor. The following conclusions were drawn from the empirical analysis. (1) The Yangtze basin is the most vigorous region of consumption growth and should be principally monitored. (2) Climate conditions have a remarkable impact on consumption growth and should be a key consideration when making differentiated household electricity policies. (3) The rebound effect has already appeared in a few of the most developed regions. Electricity price is an effective measure in dealing with this effect. (4) The improvement of the income level is the most important driving factor for consumption growth. (5) For provinces with high growth vitality, the change in the burden level of electricity expenditure prompts consumption growth. However, for provinces with low growth vitality, the situations are opposite. (6) The impacts of electricity price and population on consumption growth are negligible.

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“…Along with the development of the power market, price mechanism reforms have also been carried out. 4 Generally speaking, China's unbundling reform has accomplished a degree of success in the generation sector (Duan et al, 2016;Xie et al, 2012;Zhao and Ma, 2013), and it has had significant positive effects in enhancing the efficiency of fossil-fired power plants (Arabi et al, 2014;Du et al, 2013;Ghosh and Kathuria, 2016;Meng et al, 2016). Nevertheless, with significant increase in installed power capacity, the power supply has exceeded demand since 2012 on the whole, especially in the north, northeast, and northwest of China where the wind resources are abundant but the wind power is frequently curtailed.…”

Section: Introductionmentioning

confidence: 99%

“…In this case the provinces with excess power supplies have to face fierce competition when they endeavor to export their surplus power to the importing provinces to increase their efficiency. Both the trend of developing an open, orderly, and competitive electricity market for further electricity market reform (Meng et al, 2016;Mou, 2014) and the unbalanced power supply-demand situation show that the electricity sector is facing increasingly fierce competition. It is necessary to objectively examine the performance of the generation sector in a competitive environment to improve its efficiency and provide some guidance on further reform.…”

Section: Introductionmentioning

confidence: 99%

What Factors Affect the Competiveness of Power Generation Sector in China? An Analysis Based on Game Cross-Efficiency

et al. 2017

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China's unbundling reform in 2002 aimed to introduce competitiveness into the power industry, especially the generation sector, to improve its operational efficiency. Meanwhile, great concern about a range of environmental problems and global climate change increasingly calls for saving energy and abating emissions. Thus, the ability to balance the reduction of carbon emissions with economic benefits may to a great extent determine the competitiveness of power generation sector. This study first adopts the game cross-efficiency approach to evaluate the environmental efficiency of the generation sectors in China's 30 provinces. It then employs a system generalized method of moments model to explore the determinants of their performance while eliminating the associated endogeneity problem. The results of this first study combining the two methods indicate that efficiency gaps do exist among the regions even though overall efficiency has been improved. Despite the negative correlation between environmental efficiency and the thermal power ratio, the power mix should be adjusted gradually. The average firm size and capacity utilization rates are positive factors boosting the environmental efficiency. The 2 incentive policies for clean energy development should be differentiated across regions according to their power mix and self-sufficiency ratio.

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Have market-oriented reforms improved the electricity generation efficiency of China's thermal power industry? An empirical analysis

Cited by 51 publications

References 24 publications

The Impact of Foreign Direct Investment (FDI) on the Environment: Market Perspectives and Evidence from China

The Impact of Foreign Direct Investment (FDI) on the Environment: Market Perspectives and Evidence from China

What is Currently Driving the Growth of China’s Household Electricity Consumption? A Clustering and Decomposition Analysis

What Factors Affect the Competiveness of Power Generation Sector in China? An Analysis Based on Game Cross-Efficiency

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