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Electricity Restructuring in China: The Elusive Quest for Competition

Author

Listed:
  • Russell Pittman

    (Economic Analysis Group, Antitrust Division, Department of Justice)

  • Vanessa Yanhua Zhang

    (LECG)

Abstract

The continuation of China’s remarkable economic growth will depend on continued increases in electricity supply. China has commenced a program of electricity sector restructuring, with the announced aim of relying on markets and competition to provide incentives for attracting private investment and encouraging efficiency. However, a close examination of the generation markets being created suggests that truly free wholesale prices are likely to be both high and volatile. This may be the reason that these prices have not yet been freed – and it may not bode well for true market liberalization in the future.

Suggested Citation

  • Russell Pittman & Vanessa Yanhua Zhang, 2008. "Electricity Restructuring in China: The Elusive Quest for Competition," EAG Discussions Papers 200805, Department of Justice, Antitrust Division.
    • Handle: RePEc:doj:eagpap:200805
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    File URL: https://www.justice.gov/atr/public/eag/232668.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Hang Gao & Johannes Van Biesebroeck, 2014. "Effects of Deregulation and Vertical Unbundling on the Performance of China's Electricity Generation Sector," Journal of Industrial Economics, Wiley Blackwell, vol. 62(1), pages 41-76, March.
    2. Kahrl, Fredrich & Williams, Jim & Jianhua, Ding & Junfeng, Hu, 2011. "Challenges to China's transition to a low carbon electricity system," Energy Policy, Elsevier, vol. 39(7), pages 4032-4041, July.
    3. Chang, Yen-Chiang & Wang, Nannan, 2010. "Environmental regulations and emissions trading in China," Energy Policy, Elsevier, vol. 38(7), pages 3356-3364, July.
    4. Du, Limin & He, Yanan & Yan, Jianye, 2013. "The effects of electricity reforms on productivity and efficiency of China's fossil-fired power plants: An empirical analysis," Energy Economics, Elsevier, vol. 40(C), pages 804-812.

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    More about this item

    Keywords

    Electricity Restructuring; Competition; China;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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