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John Beirne, Guy Liu and Liang Zhang
 
''Electricity pricing in China and the role of the State''
( 2012, Vol. 32 No.1 )
 
 
Theoretical and empirical evidence is presented to show that inefficient power firms in China are subsidised by the state through the ability to charge high electricity prices and the creation of a “soft price constraint” on costs. This cost inefficiency challenges the merits of planned power supply.
 
 
Keywords: planned supply of power, electricity industry, pricing behaviour, soft price constraint, China's enterprise reform
JEL: Q4 - Energy: General
L2 - Firm Objectives, Organization, and Behavior: General
 
Manuscript Received : Jan 30 2012 Manuscript Accepted : Jan 30 2012

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