Impact of Removal of City Gas Subsidies on Chinese Urban Residents

The current cost-plus natural gas pricing mechanism makes the gas price too low, resulting in a lot of con- sumer-side subsidies and over-consumed natural gas. This paper applies the price-gap approach and input-output analysis technology to quantitatively analyze both the direct and indirect effect...

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Bibliographic Details
Published inTransactions of Tianjin University Vol. 18; no. 4; pp. 309 - 314
Main Author 廖华 朱治双 王璐
Format Journal Article
LanguageEnglish
Published Heidelberg Tianjin University 01.08.2012
Subjects
Engineering
Humanities and Social Sciences
Mechanical Engineering
multidisciplinary
Science
中国
低收入群体
城市燃气
城镇居民
天然气价格
定价机制
投入产出分析
补贴
input-output analysis technology
price-gap approach
price subsidies
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ISSN1006-4982
1995-8196
DOI10.1007/s12209-012-1944-x

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Summary:The current cost-plus natural gas pricing mechanism makes the gas price too low, resulting in a lot of con- sumer-side subsidies and over-consumed natural gas. This paper applies the price-gap approach and input-output analysis technology to quantitatively analyze both the direct and indirect effects on urban residents under the condition that natural gas subsidies are cancelled in China in 2007. It is shown that the gas price will increase by 33.3%--41.6%, and the residential consumption expenditure by 0.26%--0.33%. The low-income groups are mostly affected, so differ- ent subsidies should be implemented to make subsidies more efficient.
Bibliography:12-1248/T
price subsidies; price-gap approach; input-output analysis technology
The current cost-plus natural gas pricing mechanism makes the gas price too low, resulting in a lot of con- sumer-side subsidies and over-consumed natural gas. This paper applies the price-gap approach and input-output analysis technology to quantitatively analyze both the direct and indirect effects on urban residents under the condition that natural gas subsidies are cancelled in China in 2007. It is shown that the gas price will increase by 33.3%--41.6%, and the residential consumption expenditure by 0.26%--0.33%. The low-income groups are mostly affected, so differ- ent subsidies should be implemented to make subsidies more efficient.
ISSN:1006-4982
1995-8196
DOI:10.1007/s12209-012-1944-x