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Issue № 19. June 2009

Government Functions in Working out Natural Gas Pricing Mechanism in China

Zhao Shurong, Chen Jing

Zhao Shurong – Associate Professor, Faculty of Political Science and Public Administration, University of Science and Technology of China.

Chen Jing – master’s student, Faculty of Political Science and Public Administration, University of Science and Technology of China.

China’s rich supplies of natural gas contribute greatly to the overall national economic growth. Developing national gas industry and natural resources market is extremely important both the country’s economy and national security. Gas pricing is one of main tools of developing this market and stimulating the gas industry. China nowadays employs a specific two-way mechanism of government-controlled pricing. The lack of a market-based gas pricing mechanisms creates a wealth of problems for Chinese economy. The authors analyze international experience in gas pricing and suggest several improvements to the government-regulated gas-pricing which can ensure a sustained economic growth.

Keywords

Pricing, natural gas, government.

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