Evaluating The Shadow Price And Total-Factor Productivity Of Chinese Provincial Electricity

The prices of electricity in China don't reflect the real costs of electricity and the relationship of supply and demand.Many problems are raised due to lacking of a market-oriented pricing mechanism.With the background of energy depletion and climate change,the government should take arduous actions and be responsible for electric energy conservation and efficiency promotion.Therefore,a scientific and systematic study of Chinese provincial electricity shadow price and efficiency,is of great practical significance for Chinese electricity system reformation and the optimal utilization of electricity in the whole country.Based on Data Envelopment Analysis,this dissertation aims to provide policy advices for Chinese government to build a resource-conserving and environment-friendly society and eventually realize sustainable development.This dissertation selects the electricity consumption E,labor force L and material capital stock K in 29 provinces in China from 2000 to 2014 as input variables,real gross product Y as output variable.On the basis of comprehensive reference to relevant researches,we attempt to reveal the shadow prices of 29 provinces and three regions using DEA window analysis model.The study found that the national shadow price between 2000 and 2014 is 0.42 Yuan per kWh.The shadow price of electricity in the eastern region is higher than in the central region,and the shadow price in the western region is the lowest.Though the big difference of shadow price in the eastern and western region,they maintained a similar trend and the same growth rate.Then we get the ratio of market price to shadow price and get the following conclusions:1.the residential and agricultural electricity prices are lower than shadow price on average;2.the prices of industrial electricity are generally reasonable;3.the commercial electricity prices are significantly higher than shadow price.Finally,the Malmquist productivity index is calculated to discuss the efficiency of Chinese electricity market,and it is found that the utilization efficiency of Chinese electricity was declining in the past 15 years.The main innovations of this dissertation include:1?We apply the DEA model to calculate the shadow price of Chinese provincial electricity,which is rarely seen in previous studies.2?The data from 2010 to 2014 is quite new.Then we provide measures and strategies for promoting energy efficiency,reduction of energy consumption and establishment of a market-driven electricity pricing mechanism.