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GTAP Resource #4410

"A CGE assessment of carbon pricing with regulated electricity price in China"
by Li, Jifeng, Xin Wang and Yaxiong Zhang


Abstract
A successful carbon pricing policy in China will depend, to a large extent, on the efficient carbon cost pass-through of the electricity sector. China has decided to use more market-based instruments to develop a low-carbon economy (LCE). By 2013, seven pilot carbon emission trading systems (ETS) will be implemented and a national wide ETS will follow by 2016. Existing experiences have shown that the carbon cost pass-through in the electricity sector to downstream sectors is of crucial role to deliver effective GHG emission reduction. This is of particular interest for China’s electricity industry which is dominated by coal. However, China’s electricity market is still regulated and this entails challenges for ensuring carbon cost pass-through in its electricity price. China’s reform toward a competitive electricity market has not been successful so far and needs further works on legal framework and effective institutions. China’s electricity price still remains controlled by the government and there are an important number of institutional barriers which hinder further electricity market price reform.

Before discussing the feasibility of carbon cost pass-through in the electricity price, we need robust quantitative assessments of the impacts of carbon cost pass-through in electricity price in China. This paper provides a complementary study which focuses on the macro impacts of different options of carbon cost pass-through in the electricity price by using the SIC-GE model, a CGE model of the State Information Center of China.
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Resource Details (Export Citation) GTAP Keywords
Category: 2014 Conference Paper
Status: Published
By/In: Presented at the 17th Annual Conference on Global Economic Analysis, Dakar, Senegal
Date: 2014
Version:
Created: Li, J. (4/13/2014)
Updated: Li, J. (4/13/2014)
Visits: 2,944
- Dynamic modeling
- Climate change policy
- Asia (East)


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  File format GTAP Resource 4410  (336.8 KB)   Replicated: 0 time(s)
  File format GTAP Resource 4410-The economic impact of carbon pricing with regulated ele  (336.8 KB)   Replicated: 0 time(s)


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Last Modified: 9/15/2023 2:05:45 PM