Research On The Impact Of The Differential Electricity Price Policy On The Total Factor Productivity Of China's Energy-intensive Industries

Deferential Electricity Pricing Policy(DEPP)is of great significance to the transformation and upgrading of energy-consuming industries and to energy conservation,emission reduction as well.This article selects the policy implementation in the first three years(2004-2007)as observation period,using empirical result of the difference-in-difference(DID)method together with reports from the National Development and Reform Commission the policy was evaluated and the influence mechanism was established.Specifically,based on the data of Industrial Enterprise Database From 1998 to 2007,this paper estimated the total factor productivity(TFP)of energy-intensive enterprises through OP and LP methods.Then,PSM-DID was used to evaluate the policy effect of different electricity price policies.The main results of this paper are as follows: first,the transmission mechanism of DEPP is mainly divided into two parts---the game between the central and local governments and then policy imposing effects on enterprises.Second,the between 2005 and 2007 DEPP significantly reduces the energy intensive industries' TFP(0.56),in areas where "eliminated" and "restricted" firms are concentrated,DEPP significantly reduces the energy of total factor productivity(3.07),while in the rest places the policy effect is not significant;Fourth,DEPP's inhibition of energy-intensive industries' TFP is gradually weakened,as a whole.In areas with a high proportion of “eliminated”and “restricted” enterprises the inhibition was strengthening,while in the rest of areas the promotion effect of DEPP on TFP was captured in 2007.To sum up,the differential pricing policy significantly reduced TFP of China's high-energy consuming enterprises from 2005 to 2007,which indicates that the policy did produce "cost effect" and inhibited TFP of enterprises.But dynamically,the "technology progress effect" is gradually increasing,and the "technology progress effect" has exceeded the "cost effect" in some areas,indicating that the DEPP has indeed promoted the transformation and upgrading of high-energy consuming enterprises.