An Improved Tiered Electricity Pricing Scheme Considering Energy Saving and Carbon Reduction, Cross-Subsidy Handling, and User Demands

The electric power industry is not only facing the pressure from the reduction of industrial and commercial electricity prices to stimulate the significant growth of demand, but also facing the increasingly serious pressure of unreasonable consumption caused by cross-subsidies; the cross-subsidy mit...

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Main Authors: Siqiang Liu, Wei Ye, Yongfei Wu, Ze Ye
Format: Article
Language:English
Published: MDPI AG 2025-05-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/18/10/2610
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author Siqiang Liu
Wei Ye
Yongfei Wu
Ze Ye
author_facet Siqiang Liu
Wei Ye
Yongfei Wu
Ze Ye
author_sort Siqiang Liu
collection DOAJ
description The electric power industry is not only facing the pressure from the reduction of industrial and commercial electricity prices to stimulate the significant growth of demand, but also facing the increasingly serious pressure of unreasonable consumption caused by cross-subsidies; the cross-subsidy mitigation effect and energy-saving effect of the current tiered electricity price policy have basically disappeared. This article examines the main variables that affect the electricity demand and carbon emissions in order to develop a better tiered electricity pricing scheme that can effectively manage cross-subsidies in electricity prices while simultaneously saving energy and lowering carbon emissions. The China Statistical Yearbook’s electricity balance sheets for 2013–2020 are used in this article, along with pertinent data from the State Grid Corporation of China and the China Statistical Yearbook for 2006–2016. It builds an electricity demand model for classified users by using the time series analysis method and multiple statistical regression method. The variables are then subjected to a Granger causality test and a cointegration test in this article. The analysis shows that the adjustment of the electricity price policy has a significant impact on energy-saving and carbon reduction, and for residential electricity consumption, the income variable is the main factor affecting the electricity demand. We take residents’ affordability as the constraint condition for dividing the range of electricity and determining the beneficiary group, take the carbon emission responsibility target and the cross-subsidy degree alleviation target as constraints in determining the tiered price difference, propose an improvement scheme for the tiered electricity price, and carry out the sensitivity analysis of the influence between the parameters. The results show that the optimization improves the precision of the cross-subsidy treatment and significantly improves the effects of energy conservation and emission reduction.
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spelling doaj-art-aeb241f94e7a4ef49b2d3a8b798311f92025-08-20T02:33:55ZengMDPI AGEnergies1996-10732025-05-011810261010.3390/en18102610An Improved Tiered Electricity Pricing Scheme Considering Energy Saving and Carbon Reduction, Cross-Subsidy Handling, and User DemandsSiqiang Liu0Wei Ye1Yongfei Wu2Ze Ye3School of Economics & Management, Changsha University of Science & Technology, Changsha 410004, ChinaSchool of Economics & Management, Changsha University of Science & Technology, Changsha 410004, ChinaSchool of Economics & Management, Changsha University of Science & Technology, Changsha 410004, ChinaSchool of Economics & Management, Changsha University of Science & Technology, Changsha 410004, ChinaThe electric power industry is not only facing the pressure from the reduction of industrial and commercial electricity prices to stimulate the significant growth of demand, but also facing the increasingly serious pressure of unreasonable consumption caused by cross-subsidies; the cross-subsidy mitigation effect and energy-saving effect of the current tiered electricity price policy have basically disappeared. This article examines the main variables that affect the electricity demand and carbon emissions in order to develop a better tiered electricity pricing scheme that can effectively manage cross-subsidies in electricity prices while simultaneously saving energy and lowering carbon emissions. The China Statistical Yearbook’s electricity balance sheets for 2013–2020 are used in this article, along with pertinent data from the State Grid Corporation of China and the China Statistical Yearbook for 2006–2016. It builds an electricity demand model for classified users by using the time series analysis method and multiple statistical regression method. The variables are then subjected to a Granger causality test and a cointegration test in this article. The analysis shows that the adjustment of the electricity price policy has a significant impact on energy-saving and carbon reduction, and for residential electricity consumption, the income variable is the main factor affecting the electricity demand. We take residents’ affordability as the constraint condition for dividing the range of electricity and determining the beneficiary group, take the carbon emission responsibility target and the cross-subsidy degree alleviation target as constraints in determining the tiered price difference, propose an improvement scheme for the tiered electricity price, and carry out the sensitivity analysis of the influence between the parameters. The results show that the optimization improves the precision of the cross-subsidy treatment and significantly improves the effects of energy conservation and emission reduction.https://www.mdpi.com/1996-1073/18/10/2610green developmentcarbon emissionselectricity prices cross-subsidytiered electricityprecision processing
spellingShingle Siqiang Liu
Wei Ye
Yongfei Wu
Ze Ye
An Improved Tiered Electricity Pricing Scheme Considering Energy Saving and Carbon Reduction, Cross-Subsidy Handling, and User Demands
Energies
green development
carbon emissions
electricity prices cross-subsidy
tiered electricity
precision processing
title An Improved Tiered Electricity Pricing Scheme Considering Energy Saving and Carbon Reduction, Cross-Subsidy Handling, and User Demands
title_full An Improved Tiered Electricity Pricing Scheme Considering Energy Saving and Carbon Reduction, Cross-Subsidy Handling, and User Demands
title_fullStr An Improved Tiered Electricity Pricing Scheme Considering Energy Saving and Carbon Reduction, Cross-Subsidy Handling, and User Demands
title_full_unstemmed An Improved Tiered Electricity Pricing Scheme Considering Energy Saving and Carbon Reduction, Cross-Subsidy Handling, and User Demands
title_short An Improved Tiered Electricity Pricing Scheme Considering Energy Saving and Carbon Reduction, Cross-Subsidy Handling, and User Demands
title_sort improved tiered electricity pricing scheme considering energy saving and carbon reduction cross subsidy handling and user demands
topic green development
carbon emissions
electricity prices cross-subsidy
tiered electricity
precision processing
url https://www.mdpi.com/1996-1073/18/10/2610
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