Effects of gas pricing reform on China’s price level and total output
Natural gas plays an important role in the mitigation of climate change, yet its development is constrained by the current natural gas pricing mechanism in China. In the context of the natural gas pricing reform, this paper analyzes the potential effects on price level and total output. Through the input–output model, some conclusions are drawn as follows: (1) The gas pricing reform has relatively great impact on the products’ price of the sectors that have large gas consumption, such as industrial sectors and some service sectors, and on the total output of the gas production and supply sectors and the petroleum and natural gas extraction sectors, whereas the reform has relatively small impact on other industries; (2) effects of gas pricing reform on urban and rural residents are dissymmetrical, with larger effects on urban residents and (3) the reform has relatively small impacts on both various price indices and total output levels; thus, the government can realize the promotion of gas pricing reform nationwide at a cost of relatively small increase in general price level and little lose of total output.
KeywordsNatural gas market Pricing reform Input–output model Price level
The authors gratefully acknowledge the financial support from the Scientific Research Foundation for the Youth of Shanxi University of Finance and Economics (QN-2014004) and National Natural Science Foundation of China (71273027, 71322306).
Compliance with Ethical Standards
Conflict of interest
The authors declare that they have no conflict of interest.
Human and animal rights
This article does not contain any studies with human participants or animals performed by any of the authors.
Informed consent was obtained from all individual participants included in the study.
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