『Abstract
　Differential electricity pricing was promulgated by China's central government to guide the development of high energy-consuming industries, which are significant for energy conservation. This paper examines the twists and turns of the policy implementation at the provincial level, and seeks to elucidate the difficulties in its implementation. Local governments, concerned that following the central directives would hurt local interests, have tried to deviate from the central orders while the central revises the policy from time to time to ensure local compliance. Three difficulties are analyzed: (1) the current relations between the central and local energy regulatory institutions make these local institutions difficult to perform their duties, and affect incentives for local governments to respond to central directives; (2) financial reform puts a great burden on local governments to raise revenues to cover expenditures, making local governments focus mainly on economic development rather than serving merely as political agents of the central government; (3) the aggressive attitude of local governments in pursuing GDP growth is not necessarily driven by the central government, but by pressure from competition among localities and the need to win local support. Solving these difficulties is important for making national energy conservation policies effective and efficient.

Keywords: China; Differential electricity pricing policy; Energy conservation』

1. Introduction
2. DEPP: design and implementation
　2.1. The stage of policy promulgation (2004-2005)
　2.2. The stage of policy amendment (2006)
　2.3. The stage of policy adjustment (2007-2009)
　2.4. The stage of policy reinforcement (2010-present)
3. Analysis of difficulties in implementation
　3.1. Problems related to energy regulatory institutions at central and local levels
　3.2. Financial burden
　3.3. Pressure from competition among localities and the need to win local support
4. Conclusions
Acknowledgements
References