Skip to main content

Advertisement

SpringerLink
Log in

Sustainable and market-oriented solutions for the electricity sales market reform

  • Published:
Economic Change and Restructuring Aims and scope Submit manuscript

Abstract

China officially opened up the power sales market in 2015, and the power sales market has gradually changed from state control to market allocation of resources. However, is it compatible with sustainable green development? Using the progressive DID MODEL, this document quantifies the impact of electricity sales reform on regional green development. It uses panel data from 30 power reform pilots in China from 2009 to 2020. The findings show that China's electricity sales reform hinders the regional green economy. It is pronounced in areas with weak local government financial strength, inadequate financial development, insufficient information infrastructure and weak property rights protection. This research has broad policy implications. It provides insights for policymakers in China and potentially other developing countries seeking to carry out electricity sales market reform. It may also provide insights into the design and implementation of such reforms to ensure they align with green development goals.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Source: Authors

Fig. 2

Source: Authors

Similar content being viewed by others

Data availability

The data presented in this study are available on request from the corresponding.

References

  • Aldubyan M, Gasim A (2021) Energy price reform in Saudi Arabia: modeling the economic and environmental impacts and understanding the demand response. Energy Policy 148:111941. https://doi.org/10.1016/j.enpol.2020.111941

    Article  Google Scholar 

  • Andersen P, Petersen NC (1993) A procedure for ranking efficient units in data envelopment analysis. Manage Sci 39:1261–1264. https://doi.org/10.1287/mnsc.39.10.1261

    Article  Google Scholar 

  • Bertrand M, Duflo E, Mullainathan S (2004) How much should we trust differences-in-differences estimates? Q J Econ 119:249–275. https://doi.org/10.1162/003355304772839588

    Article  Google Scholar 

  • Bogdanov D, Ram M, Aghahosseini A, Gulagi A, Oyewo AS, Child M, Breyer C (2021) Low-cost renewable electricity as the key driver of the global energy transition towards sustainability. Energy 227:120467. https://doi.org/10.1016/j.energy.2021.120467

    Article  Google Scholar 

  • Borenstein S, Holland SP (2003) On the efficiency of competitive electricity markets with time-invariant retail prices

  • Chen S (2010) China’s green industrial revolution: an interpretation based on the perspective of environmental total factor productivity (1980–2008). Econ Res 45:21–34

    Google Scholar 

  • Chen J, Huang S, Kamran HW (2023) Empowering sustainability practices through energy transition for sustainable development goal 7: the role of energy patents and natural resources among European Union economies through advanced panel. Energy Policy 176:113499. https://doi.org/10.1016/j.enpol.2023.113499

    Article  Google Scholar 

  • Du W, Li M (2019) Government support and innovation for new energy firms in China. Appl Econ 51:2754–2763. https://doi.org/10.1080/00036846.2018.1558356

    Article  Google Scholar 

  • Huang Y, Pu Y (2020) Power selling side reform, market entity changes, and electricity price dividends: based on bargaining game. J Manag Eng 34:74–82

    Google Scholar 

  • Huang Y, Yu S, Pu Y (2023) Electricity price reform and manager behavior in power generation enterprises: based on multi-objective principal-agent model. China Manag Sci 1–13

  • Jacobson LS, LaLonde RJ, Sullivan DG (1993) Earnings losses of displaced workers. Am Econ Rev 685–709 https://www.jstor.org/stable/2117574

  • Jiatang G, Pinliang L (2016) Does the Internet promote China’s total factor productivity? Manage World 10:34–49

    Google Scholar 

  • Lin B, Zhu R (2022) How does market-oriented reform influence the rebound effect of China’s mining industry? Economic Analysis and Policy 74:34–44. https://doi.org/10.1016/j.eap.2022.01.013

    Article  Google Scholar 

  • Li L, Tao F (2012) The choice of optimal environmental regulation intensity in China’s manufacturing industry: based on the perspective of green total factor productivity. China Ind Econ 05:70–82

    Google Scholar 

  • Li QY, Zhang YSN (2021) Financial openness and resource allocation efficiency–evidence from foreign banks entering China. China Ind Econ 5:95–113

    Google Scholar 

  • Li B, Peng X, Ouyang MK (2013) Environmental regulation, green total factor productivity and change of industrial development in China: an empirical study based on data from 36 industrial sectors. China Ind Econ 4:56–68

    Google Scholar 

  • Li L, Zhao Z, Liu B (2021) Research on the effectiveness evaluation and optimization path of China’s power system reform in the context of “deregulation and service”—based on the analysis of 1486 household electricity enterprises’ power panel data in Chongqing. Public Adm Rev 14:140–158

    Google Scholar 

  • Li R, Li N, Yan X (2022) The influence mechanism of power market integration on regional green economic efficiency. Resour Sci 44:523–535

    Google Scholar 

  • Li Y, Yan C, Ren X (2023) Do uncertainties affect clean energy markets? Comparisons from a multi-frequency and multi-quantile framework. Energy Econ 121:106679. https://doi.org/10.1016/j.eneco.2023.106679

    Article  Google Scholar 

  • Lou X, Dou C, Wang G (2006) DEA-based evaluation of the relative effectiveness of China’s power reform performance. Contemp Finance Econ 04:90–93

    Google Scholar 

  • Petersen MA (2008) Estimating standard errors in finance panel data sets: comparing approaches. Rev Financ Stud 22:435–480. https://doi.org/10.1093/rfs/hhn053

    Article  Google Scholar 

  • Puller SL, West J (2013) Efficient retail pricing in electricity and natural gas markets. Am Econ Rev 103:350–355

    Article  Google Scholar 

  • Pu L, Tan Z, Wang X, Wang J, Yang J, Wang H (2022) The impact of electricity price cross subsidy cancellation on China’s social economy: a comparative analysis from a regional perspective. China Soft Sci 383(11):92–101

    Google Scholar 

  • Qingwang G, Junxue J (2005) Estimating total factor productivity in China. Econ Res J 6:51–60

    Google Scholar 

  • Ren X, Zeng G, Dong K, Wang K (2023b) How does high-speed rail affect tourism development? The case of the Sichuan–Chongqing Economic Circle. Transp Res Part A: Policy Pract 169:103588. https://doi.org/10.1016/j.tra.2023.103588

    Article  Google Scholar 

  • Ren X, Zhong Y, Cheng X, Yan C, Gozgor G (2023a) Does carbon price uncertainty affect stock price crash risk? Evidence from China. Energy Econ 122:106689. https://doi.org/10.1016/j.eneco.2023.106689

    Article  Google Scholar 

  • Ren X, Zeng G, Zhao Y (2023c) Digital finance and corporate ESG performance: Empirical evidence from listed companies in China. Pac Basin Financ J 79:102019. https://doi.org/10.1016/j.pacfin.2023.102019

    Article  Google Scholar 

  • Rodon Modol J, Eaton B (2021) Digital infrastructure evolution as generative entrenchment: the formation of a core–periphery structure. J Inf Technol 36:342–364. https://doi.org/10.1177/02683962211013362

    Article  Google Scholar 

  • Shao C, Sultan N, Yang Q (2021) The environmental effects of foreign investment on local enterprises in host countries: evidence from China. World Econ 44(03):32–60

    Google Scholar 

  • Shiltz DJ, Cvetković M, Annaswamy AM (2015) An integrated dynamic market mechanism for real-time markets and frequency regulation. IEEE Trans Sustain Energy 7:875–885. https://doi.org/10.1109/TSTE.2015.2498545

    Article  Google Scholar 

  • Shrestha B, Tiwari SR, Bajracharya SB, Keitsch MM, Rijal HB (2021) Review on the importance of gender perspective in household energy-saving behavior and energy transition for sustainability. Energies 14:7571. https://doi.org/10.3390/en14227571

    Article  Google Scholar 

  • Song F, Cui J, Jiang Z (2023) Efficiency improvement, rent transfer and market-oriented reform-social welfare analysis based on the reform of the electric power industry. Economics (Quarterly) 23(02):464–480

    Google Scholar 

  • Sun C, Zhan Y, Du G (2020) Can value-added tax incentives of new energy industry increase firm’s profitability? Evidence from financial data of China’s listed companies. Energy Econ 86:104654. https://doi.org/10.1016/j.eneco.2019.104654

    Article  Google Scholar 

  • Sun X, Xiao S, Ren X, Xu B (2023) Time-varying impact of information and communication technology on carbon emissions. Energy Econ 118:106492. https://doi.org/10.1016/j.eneco.2022.106492

    Article  Google Scholar 

  • Tone K (2001) A slacks-based measure of efficiency in data envelopment analysis. Eur J Oper Res 130:498–509. https://doi.org/10.1016/S0377-2217(99)00407-5

    Article  Google Scholar 

  • Tone K, Tsutsui M (2010) An epsilon-based measure of efficiency in DEA—a third pole of technical efficiency. Eur J Oper Res 207:1554–1563. https://doi.org/10.1016/j.ejor.2010.07.014

    Article  Google Scholar 

  • Wang B, Liu GT (2015) Energy conservation and emission reduction and China’s green economic growth—based on a total factor productivity perspective. China Ind Econ 5:57–69

    Google Scholar 

  • Wu YA, Ng AW, Yu Z, Huang J, Meng K, Dong ZY (2021) A review of evolutionary policy incentives for sustainable development of electric vehicles in China: Strategic implications. Energy Policy 148:111983. https://doi.org/10.1016/j.enpol.2020.111983

    Article  Google Scholar 

  • Yang S, Ma L, Wu Z, Liao J, Zhang X, Fan M (2018) The latest progress and enlightenment of Japan’s electricity sales side market liberalization. China Southern Power Grid Technol 12:56–59

    Google Scholar 

  • Yang C, Erfeng X, Yingjing H, Dunnan L (2019) Power supply service quality evaluation of power selling companies based on TOPSIS and BPNN. J Power Syst Automat 06:113–120

    Google Scholar 

  • Ye C (2021) Marketization reform and government regulation on the power selling side: experience and enlightenment from Texas, United States. Comp Econ Soc Syst 02:101–112

    Google Scholar 

  • Yu Y, Liu D, Gong Y (2019) Too late is too late to make things happen: local economic growth target constraints and total factor productivity. Manage World 35(07):26–42

    Google Scholar 

  • Zhang Y, Guo S, Shi X, Qian X, Nie R (2021) A market instrument to achieve carbon neutrality: Is China’s energy-consumption permit trading scheme effective? Appl Energy 299:117338. https://doi.org/10.1016/j.apenergy.2021.117338

    Article  Google Scholar 

  • Zheng S (2021) China’s power system reform and grid enterprise productivity. Ind Econ Rev 03:5–18

    Google Scholar 

  • Zhou N, Price L, Yande D, Creyts J, Khanna N, Fridley D, Franconi E (2019) A roadmap for China to peak carbon dioxide emissions and achieve a 20% share of non-fossil fuels in primary energy by 2030. Appl Energy 239:793–819. https://doi.org/10.1016/j.apenergy.2019.01.154

    Article  Google Scholar 

Download references

Funding

This research received no external funding.

Author information

Authors and Affiliations

  1. Law School, Shanxi University of Finance and Economics, 696 Wucheng Road, Taiyuan, 030006, Shanxi, People’s Republic of China

    Qiang Li & Weiming Xi

Authors
  1. Qiang Li
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Weiming Xi
    View author publications

    You can also search for this author in PubMed Google Scholar

Contributions

Q.L. was responsible for conceptualization, methodology, formal analysis, investigation, visualization, and writing—original draft preparation; Q.L. and W.X. contributed to writing—reviewing and editing; and W.X. was involved in supervision. All authors have read and agreed to the published version of the manuscript.

Corresponding author

Correspondence to Qiang Li.

Ethics declarations

Conflict of interest

The authors declare no conflict of interest.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Li, Q., Xi, W. Sustainable and market-oriented solutions for the electricity sales market reform. Econ Change Restruct 57, 30 (2024). https://doi.org/10.1007/s10644-024-09608-x

Download citation

  • Received:

  • Accepted:

  • Published:

  • DOI: https://doi.org/10.1007/s10644-024-09608-x

Keywords

Search

Navigation