China's Electricity Pricing Reform Could Boost Consumer Surplus Dramatically
China is working on changing how electricity prices are set to stop industries from subsidizing homes. To do this, they need to know how people's electricity use changes with price and income. A study used a special model to figure out these changes in China from 2006 to 2016. They found that when electricity prices go up, people use less electricity (-0.062), and when people make more money, they use more electricity (0.889). By using this information, they can figure out better ways to set prices for electricity in China.