The transmission mechanism and empirical analysis on the effects of the energy price fluctuation on industrial structure

In China, the dual structure of the Chinese economy has created a serious distortion of energy prices. Energy prices innovation is imperative. Based on the general equilibrium framework, this paper analyzed the transmission mechanism of the energy price. Utilizing the general equilibrium model, this paper analyzed the impacts of the coal price increasing 19% on industrial structure. The results indicate that under the conditions of the unconsidered energy substitution, although the prices of the upstream industries have certain conduction to that of downstream industries, the conduction degree is very weak. The energy price fluctuation has little impact on industrial structure .