1. Government functions in working out natural gas pricing mechanism in China
- Author
-
Zhao, Shurong and Chen, Jing
- Abstract
In China, there are rich reserves of natural gas resources. Natural gas, as a clean and high-quality energy and important chemical raw material, has made significant contribution to the national economic growth and development. Therefore, it is significant to vigorously develop the natural gas industry and perfect its market for improving China's energy consumption structure, easing contradictions between supply and demand, ensuring our national economic development as well as national energy security. The price of natural gas is one of the major means to develop its market and stimulate its consumption. At present, the price of natural gas is decided by our special two-track pricing mechanism which is controlled by the government to great extent, the price mechanism of natural gas is not market-oriented, so there are still lots of problems in China's natural gas pricing mechanism. However, due to this model of pricing mechanism, obviously, the government plays a very important role in the formulation of natural gas prices, and then, it is necessary to do some researches on the functions of government in the pricing mechanism of natural gas, so as to solve the existing problems in the current mechanism and further promote the development of natural gas market healthily and rapidly.
- Published
- 2009