The research on electricity and coal price level supporting the economy development in China

Abstract

The experiences of the advance industrialized countries indicated that the industrialization course correlated with energy closely. China is in process of the heavy industry stage at present. It is difficult to change the fact that the Secondary Industry is the main industry in China other than the Primary Industry or the Tertiary Industry before 2020. At the same time, the status of resources has decided that the energy supply will still depend on coal mainly in China for a quite long time in the future. The above basic tendency indicated the coal will still be the dominating energy relating the level of the national economy and the development of society of China. The electricity industry is the primary industry using coal as the raw material, which is also a basic industry supporting the national economy. The energy cost is a rigid cost of the heavy industry. The coal price is predominant factor of the prices of the other related products in the industrial chain of “Coal — Electricity industry — Heavy Industry”. When the change of the coal price transmitting to the downstream products along the industrial chain, it is also adjusting the benefit pattern of each correlated industry. Taking the energy price of the electricity industry as the object to research, the paper studies the carrying capacity for the energy cost of the industry to support the economy development of China and analyzes the reasonable electricity and coal price level, and some suggestions of the energy price for China as a resourceful country are proposed at last.