Economics at your fingertips  

Strategic oil stockpiling for energy security: The case of China and India

Xiao-Bing Zhang (), Ping Qin and Xiaolan Chen

Energy Economics, 2017, vol. 61, issue C, 253-260

Abstract: Compared with the developed countries, the developing countries could be more vulnerable to oil supply disruptions due to their lack of strategic petroleum reserves (SPRs). Several developing countries, including China and India, are establishing their SPRs to ensure energy security. In the common world oil market, one country's SPR decisions can be affected by the decisions of other countries. This paper investigates the SPR policies of China and India, two of the largest developing countries, in a game-theoretic framework, where the interactions between the two countries are taken into account. The results show that players' equilibrium stockpiling strategies and total expected costs could vary significantly with the initial oil market state, stockpile acquisition capacity and the probabilities for disruptions to persist.

Keywords: Strategic petroleum reserve; Dynamic game; Energy security; Developing countries (search for similar items in EconPapers)
JEL-codes: P48 Q41 Q48 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-04-03
Handle: RePEc:eee:eneeco:v:61:y:2017:i:c:p:253-260