How Much Would China Gain from Power Sector Reforms? An Analysis Using TIMES and CGE Models
Many countries have undertaken market-oriented reforms of the power sector over the past four decades. However, the literature has not investigated whether the reforms have contributed to economic development. This study aims to assess the potentia...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/864811561120531299/How-Much-Would-China-Gain-from-Power-Sector-Reforms-An-Analysis-Using-TIMES-and-CGE-Models http://hdl.handle.net/10986/31973 |
| Summary: | Many countries have undertaken
market-oriented reforms of the power sector over the past
four decades. However, the literature has not investigated
whether the reforms have contributed to economic
development. This study aims to assess the potential
macroeconomic impacts of an element of the power sector
reform process that China started in 2015. It uses an energy
sector TIMES model and a computable general equilibrium
model. The study finds that the price of electricity in
China would be around 20 percent lower than the country is
likely to experience in 2020, if the country follows the
market principle to operate the power system. The reduction
in the price of electricity would spill over throughout the
economy, resulting in an increase in gross domestic product
of more than 1 percent in 2020. It would also increase
household income, economic welfare, and international trade. |
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