DEPP working paper

This Working Paper is part of the Development Economics and Public Policy series

Regulatory Framework and Sustainable Development of the Electricity Sector: The Case of China

Yin-Fang Zhang

Abstract

Both supply- and demand-oriented solutions are important in cleaning up the electricity sector. However, their successful deployment requires elimination of various barriers. This paper looks at China’s electricity industry, one of the world’s largest emitters of greenhouse gases, by relating the regulatory framework to sustainable development of the sector. Under the regulatory framework featured by competing and un-coordinated authorities and conflicts between central and local governments, regulatory policies/instruments have not been conducive to remove the barriers to effective deployment of supply- and demand-side solutions. Consequently, the potential gains of pollution-control measures adopted in China have not been fully realized.

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