Research on the Impact of Reducing Industrial and Commercial Electricity Price on Henan's Overall Price Level-Based on Social Accounting Matrix

Abstract

In order to reduce the operating costs of enterprises and optimize the business environment, China implemented the policy of reducing the general industrial and commercial electricity price by 10% in 2018 and 2019. This study uses the social accounting matrix to evaluate the effect of policy implementation on the price level of Henan Province. Through price transmission, we analyze the impact of industrial and commercial electricity price changes on production price and consumer price fluctuation of other sectors. The results show that the adjustment of general industrial and commercial electricity price has limited effect on the overall economic price level of Henan Province. The impact of electricity price adjustment on urban consumer price index is higher than that of rural consumer price index.