Abstract
In Beijing, China, the rational consumption of energy is affected by the insufficient linkage mechanism of the energy pricing system, the unreasonable price ratio and other issues. This paper combines the characteristics of Beijing’s energy market, putting forward the society-economy equilibrium indicator R maximization taking into consideration the mitigation cost to determine a reasonable price ratio range. Based on the computable general equilibrium (CGE) model, and dividing four kinds of energy sources into three groups, the impact of price fluctuations of electricity and natural gas on the Gross Domestic Product (GDP), Consumer Price Index (CPI), energy consumption and CO2 and SO2 emissions can be simulated for various scenarios. On this basis, the integrated effects of electricity and natural gas price shocks on the Beijing economy and environment can be calculated. The results show that relative to the coal prices, the electricity and natural gas prices in Beijing are currently below reasonable levels; the solution to these unreasonable energy price ratios should begin by improving the energy pricing mechanism, through means such as the establishment of a sound dynamic adjustment mechanism between regulated prices and market prices. This provides a new idea for exploring the rationality of energy price ratios in imperfect competitive energy markets.
Highlights
By 2017, the city’s total coal consumption will be cut down by 13 million tons compared with 2012, which is controlled within 10 million tons, and the proportion of coal consumption accounted for the total energy consumption will be dropped to 10%; Secondly, the total amount of motor vehicles will be controlled within 5.6 million, and 300 polluting enterprises will be ordered to move out of Beijing; Thirdly, the “replace coal and oil by electricity” policy will be actively promoted, by 2017, the proportion of electricity consumption from other provinces will be up to 70%, and the total electricity consumption will be accounted for 40%
This paper establishes the society–economy equilibrium indicator maximization model taking into consideration the economic development and mitigation cost and analyses the optimized price ratio in different situations, and explores the impact of Beijing’s energy price ratio fluctuations on the economy and the environment, and Beijing’s reasonable energy price ratio
This model has some weaknesses in the treatment of mitigation cost, it provides a new idea for exploring the rationality of energy price ratios in imperfect competitive energy markets
Summary
The coal and crude oil prices in Beijing are market-oriented, while the Government regulates the prices of secondary energy sources like electricity, gas and oil products at a relatively low level in order to control the price levels to ensure social stability [2]. This causes serious cost burdens and operating losses for the power plants and oil refineries in the middle stream. Because the energy structure, energy consumption patterns and consumer price affordability vary in different countries or areas, Beijing’s rational energy price ratio level cannot be fully reflected by the international standard. Beijing’s Energy Pricing Policy and an Optimized Price Ratio Model Based on CGE Model
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