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Effects of gas pricing reform on China’s price level and total output

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Abstract

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.

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Acknowledgments

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).

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Authors and Affiliations

  1. School of Economics, Shanxi University of Finance and Economics, 696 Wucheng Road, Xiaodian District, Taiyuan, 030006, China

    Zhishuang Zhu, Huaming Zhang, Gege Tao & Feng Yu

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  1. Zhishuang Zhu
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  2. Huaming Zhang
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  3. Gege Tao
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  4. Feng Yu
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Correspondence to Zhishuang Zhu.

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Zhu, Z., Zhang, H., Tao, G. et al. Effects of gas pricing reform on China’s price level and total output. Nat Hazards 84 (Suppl 1), 167–178 (2016). https://doi.org/10.1007/s11069-015-1884-6

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  • DOI: https://doi.org/10.1007/s11069-015-1884-6

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