| Author | Jia, Ke |
| Call Number | AIT RSPR no. SM-01-22 |
| Subject(s) | Investments, Foreign--China
|
| Note | A research study in pa1tial fulfillment of the requirements for the degree of Master of
Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-01-22 |
| Abstract | In the early 1990s, hoping to reduce electricity shortages and enhance the efficiency of
Chinese power plants, China opened its doors to foreign direct investment (FDI) in
electricity generation. Using data from an original survey of foreign private investors,
official Chinese statistics, and other sources, we assess the volume and characteristics of
FDI in China's power sector, its impact on energy efficiency, and the factors that limit
this impact.
Five principal findings are described as follows. First, the volume FDI in China's power
sector will likely fall short of the government's 2001-2005 capacity expansion target by a ยท
substantial margin, most likely because of persistent institutional barriers to FDI. Second,
to avoid the lengthy central government approval process for large plants and to
minimize risk, early FDI tended to be in small-scale, gas- and oil-fired plants using
imported equipment and located in coastal provinces. However, more recent FDI tends to
be in larger coal-fired plants that use more Chinese equipment and tends to be located in
the north as well as the east. Third, and perhaps most important, FDI is likely having a
significant positive impact on energy efficiency. Almost a third of the 20 FDI plants in
our sample use advanced efficiency-enhancing generating technologies, and a fifth are
cogeneration plants. Fourth, the main factor that has hampered the contribution of FDI to
energy efficiency is an institutional bias in favor of small-scale plants, which are
generally not as energy efficient as the large-scale plants. And finally, the most important
barriers to FDI generally are uncertainty associated with the approval process of FDI
projects, electricity sector regulation, and the risk of default on power purchase contracts. |
| Year | 2001 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-01-22 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Swierczek, F. W.; |
| Examination Committee(s) | Quang, Truong ;Bechter, Clemens; |
| Scholarship Donor(s) | Royal Thai Government; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2001 |