Advertisement

Energy policy, market environment and the economic benefits of enterprises: evidence from China’s petrochemical enterprises

  • Liangfeng Zhu
  • Xueyi ZhuEmail author
Original Paper

Abstract

This paper studies the external impact of China’s energy policy and market environment changes and the internal impact of internal control and management on the economic benefits of petrochemical enterprises. From 2011 to 2015, China’s energy and economic policies were adjusted, and the market environment underwent major changes. This paper quantifies these two factors into indexes and combines them with the enterprise internal control index to apply them to the economic benefit model of petrochemical enterprises. Regression analysis has been used for positive analysis. The study finds that changes in China’s energy policy have played a guiding, regulating and promoting role in the development of petrochemical enterprises; the more restrictions the market environment imposes on petrochemical enterprises, the fewer economic benefits the petrochemical enterprises receive. Strengthening internal control in petrochemical enterprises can offset some unfavorable factors, and the economic benefits for downstream petrochemical enterprises are better than those for upstream ones. This paper reveals the effects of the energy policy action index, the market environment restriction index and the internal control index on the economic benefits of petrochemical enterprises. The policy recommendations are as follows: governments should improve the market environment and formulate policies that will benefit upstream petrochemical enterprises, especially oil and gas extraction enterprises, by raising product prices and increasing profit margins.

Keywords

Energy policy Market environment China’s petrochemical enterprises Economic benefit 

Notes

Acknowledgements

The authors gratefully acknowledge the respected editors and the anonymous referees for their suggestions in this article. Special thanks are given for the financial support provided by the Major Projects of the National Social Science Fund of China (No. 15ZDB163), the Top-notch Academic Programs Project of Jiangsu Higher Education Institutions (No. PPZY2015C227), the Business Administration First Class Built Subject of Jiangsu Province in the 13th Five-Year (No. SJY201609) and the National Natural Science Foundation of China (71573255).

Supplementary material

11069_2019_3579_MOESM1_ESM.docx (18 kb)
Supplementary material 1 (DOCX 18 kb)

References

  1. Chi G (2011) The function orientation and system construction of the internal control index of China’s listed companie. Manag World (06):172–173Google Scholar
  2. China Petroleum and Chemical Industry Association (2012) 2011 China Petroleum and Chemical Industry economic operation analysis. Int Pet Econ (1–2):57–65Google Scholar
  3. Emerald Group Publishing Limited (2008) VAT may support energy efficiency push in Europe. Manag Environ Qual Int J.  https://doi.org/10.1108/meq.2008.08319aab.005 Google Scholar
  4. Florax RJ, De Groot HL, Mulder P (2011) Improving energy efficiency through technology – trends, investment behaviour and policy design. Manag of Environ Qual Int J 23(4):352Google Scholar
  5. Garrón Bozo M (2008) Energy policies in Latin America and the Caribbean and the evolution of sustainability. Int J Energy Sector Manag 2(1):8–35CrossRefGoogle Scholar
  6. Gatzert N, Kosub T (2017) Determinants of policy risks of renewable energy investments. Int J Energy Sect Manag 11(1):28–45CrossRefGoogle Scholar
  7. Hong Y (2014) On the new normal growth and support the normal growth of the norm. Econ Perspect (11):4–7Google Scholar
  8. Jia M, Song X (2009) The global economic crisis and the risk management of China Petroleum Processing Enterprises. Hebei Acad J 29(3):161–164Google Scholar
  9. Li Q (2013) On the definition of government intervention and market regulation. Chin Foreign Entrep (4):257–258Google Scholar
  10. Li M, Xu X, Han Z, Chen L (2002) The establishment of the internal operation check system of oil field under the new system. Reform Econ Syst (3):63–65Google Scholar
  11. Lin R, Yang Y (2014) The evolution of effective China market reform and monetary policy—analysis based on DSGE model. Manag World (06):39–52, 187Google Scholar
  12. Liu B (2012) Problems and countermeasures of ideological and political work in petroleum and petrochemical enterprises. Truth Seek (S1):2Google Scholar
  13. Ozoliņa L, Rošā M (2012) A review of energy efficiency policy and measures for industries in Latvia. Manag Environ Qual Int J 23(5):517–526CrossRefGoogle Scholar
  14. Piotr Z (2007) Polish Government policy for coal (1989–2006). Int J Energy Sector Manag 1(3):273–294CrossRefGoogle Scholar
  15. Pušnik M, Sučić B (2014) Integrated and realistic approach to energy planning—a case study of Slovenia. Manag Environ Qual Int J 25(1):30–51Google Scholar
  16. Sina Financial (2014) APEC CEO Summit—Xi Jinping keynote speech[EB/OL]. http://finance.sina.com.cn/focus/2014apec. Accessed 08 Nov 2014
  17. State Council of China (2011) Energy Development in 12th Five-Year planning[EB/OL]. [23-1-2013]. http://www.gov.cn/zwgk/2013-01/23/content_2318554.htm. Accessed 18 Feb 2018
  18. Wang Y, Ceng Z (2016) Discussion on safety management of hazardous chemicals in petrochemical enterprises. Petrochem Ind Technol 23(10):193Google Scholar
  19. Zeng X (2015) Response to market challenges under low oil price of China’s petroleum and petrochemical enterprises. Int Pet Econ 23(12):1–9Google Scholar
  20. Zhang D, Hong C (2014) Asymmetric relationship of international oil price and economic growth in China. China Econ Q 13(2):699–722Google Scholar
  21. Zhao Zhiping (2016) A review on the economic operation of China’s petroleum and chemical industry in 2015 and a prospect for 2016. Chem Enterp Manag 24(2):1–7Google Scholar
  22. Zhao Y, Wang Y (2009) System analysis on the sustainable development of China’s petrochemical enterprise. Sci Technol Manag 11(2):4–7Google Scholar
  23. Zhu L (2015) Analysis of the relationship between the economic benefits of coal enterprises and external force and internal funds operation. Resour Sci 37(12):2414–2420Google Scholar
  24. Zhu L, Huang G, Zhang Y (2014) A research on the trend of Chinese energy structure coal market forced mechanism. Price Theory Practice (3):57–59Google Scholar
  25. Zhu L, Zhu X, Zhang W (2016) Determination of downward pressure index of petrochemical enterprises. Stat Decis(14):185–188Google Scholar

Copyright information

© Springer Nature B.V. 2019

Authors and Affiliations

  1. 1.Business SchoolChangzhou UniversityChangzhou CityChina
  2. 2.Gangzha Economic Development Zone, Business SchoolNantong Institute of TechnologyNantongChina

Personalised recommendations