Research On The Tiered Electricity Price Policy For Shanghai Residents

Electricity price is an important economic index related to national economy and people's life,so the perfection of the electricity price structure is very important.But in China,the resident electricity price is much lower than the industry and commerce electricity price,causing the higher price subsidizing the lower price.In this context,the tiered electricity pricing policy for residents is particularly urgent and important.The tiered electricity pricing policy for residents can not only adjust the unreasonable price system of electric power commodities,but also improve the awareness of saving energy and emission reduction in China.According to the guidelines of the National Development and Reform Commission(NDRC)and the practice of the local conditions,many regions have established their own model of the electricity pricing policy suitable for local economic conditions and electricity consumption level.Shanghai is an important economic region in China and its residential electricity load still has much room to rise.In order to solve this problem,Shanghai has implemented a series of measures,but it is not helpful.In July 2012,Shanghai implemented tiered electricity pricing policy for residents on the basis of peak and valley time-of-use electricity price.Based on the panel household data,this paper discusses the influence of policies on residents' electricity consumption.Regression models include household and time fixed effects to control for omitted variable bias.The result shows that the electricity consumption reduces 28.71 KWH on average.Besides,the electricity consumption in new communities reduces 39.93 KWH and the electricity consumption in old communities reduces 16.28 KWH.According to the tiered thresholds of the policy,the power consumption decreases 11.46 KWH for households in the first level,the power consumption decreases 57.04 KWH for households in second level and the power consumption decreases 84.88 KWH for households in third level.This suggests that the policy is effective.The paper includes:The first chapter introduces the background and significance of the tiered electricity pricing policy in Shanghai,and discusses the innovations and shortcomings of this study.The second chapter summarizes the relevant literature in China and abroad.The third chapter analyzes the necessity of implementing the tiered electricity pricing policy for residents.The fourth chapter includes the econometric model,results and the discussion on the effect of the policy in Shanghai.The fifth chapter summarizes the effect of the policy in Shanghai and makes some suggestions for policy in Shanghai,including exploring the new energy to generate the electricity,improving the corollary equipment and management work,strengthening publicity to enhance the identity of the residential groups,improving the capacity of the comprehensive service and continuously discussing more scientific and complete the policy and establishing.Since the policy was carried out in China,a lot of researches have emerged to study the policy from different perspectives.However,there is still no study using electricity data at the residential level to analyze the effect of the policy.Therefore,this paper supplements some literature of the policy in Shanghai.The biggest disadvantage of this paper is the geographical limitation.The conclusion is only applicable to Shanghai,and the other provinces and cities in China have similar effects.Shanghai's economy has grown more rapidly and strongly than other provinces,with a relatively high GDP and a relatively low proportion of electricity expenditure in family income;on the other hand,the policy in Shanghai has many preferential policies.But other provinces have not taken similar measures.In addition,the policy in Shanghai combines with peak and valley time-of-use electricity price.However,this paper does not elaborate or study the peak and valley time-of-use electricity price.