 Inflationary and distributional effects of fossil energy price fluctuation on the Chinese economyZhan-Ming Chen (), Pei-Lin Chen, Zeming Ma, Shiyun Xu, Tasawar Hayat and Ahmed Alsaedi Energy, 2019, vol. 187, issue C Abstract: This study uses a non-competitive input-output model with monthly empirical data from January 2012 to November 2018 to evaluate the inflationary and distributional effects of fossil energy price fluctuation on the Chinese economy. Results show that the average monthly responses of consumer price index, producer price index, and gross domestic product deflator to fossil energy price change are 0.64%, 1.95%, and 1.46%, respectively. The inflationary pressures resulted from the price fluctuation of different energy types and sources are identified, which facilitates policymaking targeting different driving factors of inflation. Opposite progressivity is observed in terms of distributional effect measured by the expenditure changes of residents at different income levels, i.e., the coal price change leads to regressive impact while the crude oil price change leads to progressive one. Policy implications for China's energy market reform and energy tax design have been put forward based on the results of this study. Keywords: Fossil energy; Inflationary effect; Distributional effect; Input-output model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:187:y:2019:i:c:s0360544219316640 DOI: 10.1016/j.energy.2019.115974 Access Statistics for this article Energy is currently edited by Henrik Lund and Mark J. Kaiser More articles in Energy from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.