China: Pricing Reforms

The government removed the heavy subsidies that had been keeping energy prices low and providing a disincentive for the development of increased efficiency. A two-tiered (or multiple) price structure was introduced for coal and petroleum prices, allowing for quantities beyond production quotas to be sold at higher prices.   

Date Implemented: 1980s: ‘81 (oil), ‘82/’84 (coal); ‘87 (natural gas), ‘85 (electricity); 1990s for coal, oil

Status: Mandatory

References: Reform of China’s Energy Institutions and Policies: Historical Evolution and Current Challenges, Energy Technology Innovation Project, Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University (2001),