Comprehensive measurement of energy market integration in East Asia: An application of dynamic principal component analysis

Zhang, D; Shi, X; Sheng, Y

Comprehensive measurement of energy market integration in East Asia: An application of dynamic principal component analysis

Zhang, D Shi, X

Sheng, Y

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Publication Type:: Journal Article
Citation:: Energy Economics, 2015, 52 pp. 299 - 305
Issue Date:: 2015-11-01

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Field	Value	Language
dc.contributor.author	Zhang, D	en_US
dc.contributor.author	Shi, X https://orcid.org/0000-0001-9653-7395	en_US
dc.contributor.author	Sheng, Y	en_US
dc.date.issued	2015-11-01	en_US
dc.identifier.citation	Energy Economics, 2015, 52 pp. 299 - 305	en_US
dc.identifier.issn	0140-9883	en_US
dc.identifier.uri	http://hdl.handle.net/10453/119262
dc.description.abstract	© 2015 Elsevier B.V. The energy market integration (EMI) in East Asia has been carried out for over a decade. Despite the efforts exerted by countries in the region, little has been known about the EMI progress. This paper innovatively applies the dynamic principal component analysis to measure the EMI and its evolution in East Asia between 1995 and 2011. The EMI is measured by using information from all the five dimensions that have been identified in the literature: (1) energy trade liberalisation; (2) investment liberalisation; (3) development of energy infrastructure and its associated institutional arrangements; (4) domestic market openness; and (5) energy pricing reform. Results show that although significant progress has been made for EMI in East Asia, there are significant cross-country disparities in different aspects. Moreover, we show that further efforts towards EMI in general should focus on liberalising national markets first, then phasing out fossil fuel subsidies and finally, liberalising investment regime since national market liberalisation is the least developed dimensions. Certain countries that lag behind in EMI need to learn from either their past experiences or from other nations and focus their efforts on their relatively weak dimensions.	en_US
dc.relation.ispartof	Energy Economics	en_US
dc.relation.isbasedon	10.1016/j.eneco.2015.11.006	en_US
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject.classification	Energy	en_US
dc.title	Comprehensive measurement of energy market integration in East Asia: An application of dynamic principal component analysis	en_US
dc.type	Journal Article
utslib.citation.volume	52	en_US
utslib.for	1402 Applied Economics	en_US
utslib.for	0906 Electrical and Electronic Engineering	en_US
utslib.for	0913 Mechanical Engineering	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/DVC (International)
pubs.organisational-group	/University of Technology Sydney/DVC (International)/Australia-China Relations Institute
utslib.copyright.status	closed_access	*
pubs.publication-status	Published	en_US
pubs.volume	52	en_US

Abstract:

© 2015 Elsevier B.V. The energy market integration (EMI) in East Asia has been carried out for over a decade. Despite the efforts exerted by countries in the region, little has been known about the EMI progress. This paper innovatively applies the dynamic principal component analysis to measure the EMI and its evolution in East Asia between 1995 and 2011. The EMI is measured by using information from all the five dimensions that have been identified in the literature: (1) energy trade liberalisation; (2) investment liberalisation; (3) development of energy infrastructure and its associated institutional arrangements; (4) domestic market openness; and (5) energy pricing reform. Results show that although significant progress has been made for EMI in East Asia, there are significant cross-country disparities in different aspects. Moreover, we show that further efforts towards EMI in general should focus on liberalising national markets first, then phasing out fossil fuel subsidies and finally, liberalising investment regime since national market liberalisation is the least developed dimensions. Certain countries that lag behind in EMI need to learn from either their past experiences or from other nations and focus their efforts on their relatively weak dimensions.

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http://hdl.handle.net/10453/119262