Research Article
Issues and Optimization Suggestions for the Implementation of China's Environmental Protection Electricity Price Policy in the Context of the Power Market
@INPROCEEDINGS{10.4108/eai.24-5-2024.2350030, author={Lifeng Fang and Shenghua Wang and Xin Yao}, title={Issues and Optimization Suggestions for the Implementation of China's Environmental Protection Electricity Price Policy in the Context of the Power Market}, proceedings={Proceedings of the 3rd International Conference on Mathematical Statistics and Economic Analysis, MSEA 2024, May 24--26, 2024, Jinan, China}, publisher={EAI}, proceedings_a={MSEA}, year={2024}, month={10}, keywords={electricity price environment protection power market reform}, doi={10.4108/eai.24-5-2024.2350030} }- Lifeng Fang
Shenghua Wang
Xin Yao
Year: 2024
Issues and Optimization Suggestions for the Implementation of China's Environmental Protection Electricity Price Policy in the Context of the Power Market
MSEA
EAI
DOI: 10.4108/eai.24-5-2024.2350030
Abstract
Coal-fired power generation enterprises produce a significant amount of air pollutants while generating electricity. The environmental electricity price policy implemented by the Chinese government since 2004 has effectively supported power generation companies in pollution control efforts. However, since the initiation of electricity market reforms in 2015, the environmental electricity price policy has lost external conditions, posing risks of potential non-compliance. This article first introduces the history and key content of the environmental electricity price policy, highlighting the challenges it faces in the context of electricity market reform. Based on the principal-agent theory framework, the article designs policy mechanisms on how the government can incentivize power generation companies to effectively implement pollution control measures and provides corresponding policy recommendations.