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

Zhang, Y; Nie, R; Shi, X; Qian, X; Wang, K

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

Zhang, Y Nie, R Shi, X

Qian, X Wang, K

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Publication Type:: Journal Article
Citation:: Energy Policy, 2019, 128 pp. 125 - 135
Issue Date:: 2019-05-01

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Field	Value	Language
dc.contributor.author	Zhang, Y	en_US
dc.contributor.author	Nie, R	en_US
dc.contributor.author	Shi, X https://orcid.org/0000-0001-9653-7395	en_US
dc.contributor.author	Qian, X	en_US
dc.contributor.author	Wang, K	en_US
dc.date.available	2021-05-18T19:02:26Z
dc.date.issued	2019-05-01	en_US
dc.identifier.citation	Energy Policy, 2019, 128 pp. 125 - 135	en_US
dc.identifier.issn	0301-4215	en_US
dc.identifier.uri	http://hdl.handle.net/10453/134950
dc.description.abstract	© 2018 Elsevier Ltd Due to the dominance of coal in China's energy mix, coal prices have always been a challenging 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 methods 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 policies to advance marketization of coal prices amid the energy transition.	en_US
dc.relation.ispartof	Energy Policy	en_US
dc.relation.isbasedon	10.1016/j.enpol.2018.12.051	en_US
dc.rights	info:eu-repo/semantics/embargoedAccess
dc.subject.classification	Energy	en_US
dc.title	Can energy-price regulations smooth price fluctuations? Evidence from China's coal sector	en_US
dc.type	Journal Article
utslib.citation.volume	128	en_US
utslib.for	140205 Environment and Resource Economics	en_US
utslib.for	160507 Environment Policy	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	open_access	*
pubs.publication-status	Published	en_US
pubs.volume	128	en_US

Abstract:

© 2018 Elsevier Ltd Due to the dominance of coal in China's energy mix, coal prices have always been a challenging 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 methods 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 policies to advance marketization of coal prices amid the energy transition.

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http://hdl.handle.net/10453/134950