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A system dynamics model of coordinated development of central and provincial economy and oil enterprises

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  • Ge, Feng-Long
  • Fan, Ying

Abstract

Based on the characteristics of oil exploration and development and the inherent rule of a coordinated development of central and provincial economy and oil enterprises in oil producing provinces, this paper addresses the principal questions that determine the coordinated development of the central economy, provincial economy and oil enterprises, and establishes a dynamic model for the above three variables. The research takes Shaanxi Province as an example and makes analogue simulation of the situations from 2006 to 2020. The results indicate that China's provincial governments need to share more tax income, reform some taxes on oil enterprises, and China's oil industry needs to be open to both provincial state-owned enterprise and private enterprise. Meanwhile, this research also provides policy proposals for the coordinated development of central and provincial economy and oil enterprises regarding taxation and sustainable development in China's market-oriented economy.

Suggested Citation

  • Ge, Feng-Long & Fan, Ying, 2013. "A system dynamics model of coordinated development of central and provincial economy and oil enterprises," Energy Policy, Elsevier, vol. 60(C), pages 41-51.
  • Handle: RePEc:eee:enepol:v:60:y:2013:i:c:p:41-51
    DOI: 10.1016/j.enpol.2013.05.033
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    References listed on IDEAS

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    1. Milani, Fabio, 2009. "Expectations, learning, and the changing relationship between oil prices and the macroeconomy," Energy Economics, Elsevier, vol. 31(6), pages 827-837, November.
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    Keywords

    Oil economy; System dynamics; Simulation;

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