Abstract
In order to reduce the operating costs of enterprises and optimize the business environment, China implemented the policy of reducing the general industrial and commercial electricity price by 10% in 2018 and 2019. This study uses the social accounting matrix to evaluate the effect of policy implementation on the price level of Henan Province. Through price transmission, we analyze the impact of industrial and commercial electricity price changes on production price and consumer price fluctuation of other sectors. The results show that the adjustment of general industrial and commercial electricity price has limited effect on the overall economic price level of Henan Province. The impact of electricity price adjustment on urban consumer price index is higher than that of rural consumer price index.
Highlights
In order to implement the policy of reducing the general industrial and commercial electricity price, Henan Province has reduced the general industrial and commercial electricity prices three times in 2018
Henan province has completed the goal of cutting down the industrial and commercial electricity prices by 10%, which has directly reduced the cost of electricity for industrial and commercial users, which almost amount to 4 billion yuan
Some studies simulate the interaction among the sectors of the national economic system, and analyze the impact of electricity price adjustment on the development of the national economy[4]
Summary
In order to implement the policy of reducing the general industrial and commercial electricity price, Henan Province has reduced the general industrial and commercial electricity prices three times in 2018. Reducing the general industrial and commercial electricity prices mainly involves the operating costs of small and medium-sized enterprises, with a wide range and high social attention. The effect of this policy on the expansion of domestic demand, consumption, and industrial upgrading in Henan Province needs further evaluation. Through the analysis of price multiplier and conduction path, we conduct quantitatively research on the effect of reducing the general industrial and commercial electricity price on Henan's overall economic price level
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