An empirical study on the effect of electric power industry regulation reform

Abstract

To accomplish the goal of “11th five-year plan”: cutting energy consumption per unit of GDP by 20%, our country implements the “energy saving” plan actively. But in 2008, there were 24 provinces forced to wind up electricity using because the total power amount fell behind the economic development. Under the current background, this article adopts China's power industry data from 1990 to 2008, and uses ADF and Engle-Granger measurement methods to analyze the effect of regulation. After the study we found: China's electric power industry regulation significantly increases total power amount of the electric power industry in the statistical meaning, and reduces the electricity price level. Overall, the effect of the electric power industry regulation is obvious, but there are still some problems existing, for example, the price of electricity does not match with people's living standards, the total power amount can not keep up with economic development and so on. Therefore, this paper provides some policy recommendations to the further power industry reform in China.