Analysis of thermal coal pricing and the coal price distortion in China from the perspective of market forces

Cui, Herui; Wei, Pengbang

doi:10.1016/j.enpol.2017.03.049

Cited by 49 publications

(24 citation statements)

References 23 publications

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“…Although we suggest to improve the effectiveness of policy intervention on pricing, we do not deny that in the medium-to long term, the government could abolish coal price interventions in line with the current overall national economic reform agenda ( 18thCentral Committee of the Communist Party of China, 2013). This long-term strategy in regulating coal prices is consistent with several scholars' work (Wang et al, 2009;Cui and Wei, 2017;Shi and Sun, 2017). In order to mitigating unreasonable price fluctuations under a liberalized price environment, the pricing mechanism should be well developed to reflect market fundamentals.…”

Section: Conclusion and Policy Implicationssupporting

confidence: 71%

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Can energy-price regulations smooth price fluctuations? Evidence from China’s coal sector

et al. 2019

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Due to the dominance of coal in China's energy mix, coal prices have always been a challenge part of pricing reform. The recent frequent government interventions raise the key research questions: what is the actual impact of price policies on coal price fluctuations, and how can forward-looking pricing policies be made. By proposing a novel classification of coal pricing policies and introducing an expectation and forward-looking coefficient, the paper examines the relationship between coal price fluctuations and pricing policies using the generalized method of moments (GMM) method. It shows that the lagging coal price and coal demand play a positive role in regulating coal prices, while coal supply and marketization have significantly negative effects on coal price fluctuations. The heterogeneous impacts of price policies are due to differences in market players' expectations, policy instruments and the method of policy release. In addition, China's coal pricing policy portfolio from 2013 to 2016 exerted synergy effects on the restraint of coal price fluctuations. As the forward-looking coefficient was considerably low, the government's intervention behaviors were obviously biased towards ex post facto responses. The paper suggests short run and long run policy to advance marketization of coal prices amid the energy transition.

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Section: Conclusion and Policy Implicationssupporting

confidence: 71%

“…Since most economic variables are usually in non-stationary sequences, we first checked the stationarity of the logarithmic coal price and other variables to avoid a heteroscedasticity issue (Cui and Wei, 2017). The Augmented Dickey Fuller (ADF) test…”

Section: Resultsmentioning

confidence: 99%

Can energy-price regulations smooth price fluctuations? Evidence from China’s coal sector

et al. 2019

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“…The consumption accounts for 11% of total world consumption. The contact of the domestic coal market and international coal market is more and more closely, with the advance of Indian's coal market, international coal prices will have more impact on national coal prices [14] D. Export Quantity Indian domestic markets are facing the high demand for coal quantity to fulfil that and its need to be the energy sectors. We export coal to Nepal, Bangladesh, and Bhutan to create a market for the long term, through bilateral agreement basis Indian coal market a very small quantity of coal export to neighbouring countries [15].…”

Section: International Coal Pricesmentioning

confidence: 99%

Factors Influencing on Coal Price and Development of a Pricing Model for Indian Coal

brahmam*

2020

IJITEE

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Coal plays a crucial role in India as it fulfills almost 67% of the total commercial energy consumed in Indian industries. Fossil fuels are the major drivers of the country's economy. The coal price is affected by many parameters including its grade, demand at the national level and international coal price. We observed in the year 2017-18, the total production of coal in India was 675 MT but the actual demand for coal in India was 884 Million Tonnes (MT), with the actual supply falling short resulting in a demand deficit. This deficit was offset by import 202 MT of coal. Over 22.8% of coal imports in 2017-18 were sourced from Indonesia followed by import from Australia and South Africa. The study identifies some major factors that may have an influenced on Indian coal price, including coal export, coal import and international coal prices by analysing and processing of Indian coal data which is from 1993to2018 with the help of SPSS software by the regression analysis. The logarithmic coal price is the dependent variable and the hypothesized independent variables are relative value of demand and supply, export, import, stock, international coal price, international oil prices. According to the result, the factors like a relative value of demand and supply, coal production, international oil price are no significant influencing on Indian coal prices and the significant variables are helpful to developing coal pricing mode for Indian coal. The coal pricing model has useful to estimate the future price of Indian coal and also to identify the impact of import coal quantity on Indian coal prices.

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“…Therefore, the elasticity of capital outflow was higher than the elasticity of labour force, causing a decrease in mining and coal industry. Cui and Wei (2017) analyse the distortion in the price of thermal coal when taking into account market forces. According to the researchers, the price of thermal coal is influenced by many variables among which: the price of electricity; the predictable elasticity of an enterprise within the electricity industry; the price elasticity of coal supplies.…”

Section: Cost Accounting and Mining Industrymentioning

confidence: 99%

An econometric approach on production, costs and profit in Romanian coal mining enterprises

Bătrâncea

Nichita

et al. 2019

Economic Research-Ekonomska Istraživanja

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Analysis of thermal coal pricing and the coal price distortion in China from the perspective of market forces

Cited by 49 publications

References 23 publications

Can energy-price regulations smooth price fluctuations? Evidence from China’s coal sector

Can energy-price regulations smooth price fluctuations? Evidence from China’s coal sector

Factors Influencing on Coal Price and Development of a Pricing Model for Indian Coal

An econometric approach on production, costs and profit in Romanian coal mining enterprises

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