Effects of deregulation and vertical unbundling on the performance of China's electricity generation sector
AbstractWe study whether the 2002 deregulation and vertical unbundling of the Chinese electricity sector has boosted productivity in the generation segment of the industry. Controlling explicitly for sources of price-heterogeneity across firms and for firm-fixed effects, we find deregulation to be associated with a reduction in labor input and material use of 6 and 4 percent, respectively. This effect only appears two years after the reforms, is robust to alternative ways of identifying restructured firms, and to the nonrandom selection of restructured firms using a matching estimator. Input use of new state-owned firms that start operations two years into the reform period does not differ significantly anymore from input use of private sector entrants.
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Bibliographic InfoPaper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces11.30.
Date of creation: Nov 2011
Date of revision:
Other versions of this item:
- Gao, Hang & Van Biesebroeck, Johannes, 2011. "Effects of Deregulation and Vertical Unbundling on the Performance of China's Electricity Generation Sector," CEPR Discussion Papers 8695, C.E.P.R. Discussion Papers.
- L5 - Industrial Organization - - Regulation and Industrial Policy
- L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-03 (All new papers)
- NEP-EFF-2012-04-03 (Efficiency & Productivity)
- NEP-ENE-2012-04-03 (Energy Economics)
- NEP-REG-2012-04-03 (Regulation)
- NEP-TRA-2012-04-03 (Transition Economics)
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