 The transmission of coal price shock to Chinese industry: Sub-sectors and regions heterogeneityBoqiang Lin () and Tianxu Lan Energy, 2025, vol. 316, issue C Abstract: This study employs the time-varying parameter factor-augmented vector autoregressive model to investigate the transmission dynamics of coal price shocks in China's industrial sectors. Moreover, it delves into the heterogeneous responses of various sub-sectors and diverse provinces to coal price escalations. The principal findings are: (1) The escalation in coal prices manifests a short-term capacity to stimulate investments and industrial output within China's coal sector, thus exhibiting a discernible positive influence on its development. (2) Via the channels of cost transmission, coal price shocks yield short-term adverse repercussions on the output of most industrial segments. (3) The impact of coal price shocks on industrial output is heterogeneous across provinces, which is due to the differences in industrial composition among Chinese provinces. Subsequently, grounded in the derived research insights, this study propounds targeted policy recommendations from the vantage points of fostering industrial advancement. Keywords: TVP-FAVAR model; Coal price shocks; Industrial output; Sub-sectors heterogeneity; Regional heterogeneity (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:316:y:2025:i:c:s0360544225001136 DOI: 10.1016/j.energy.2025.134471 Access Statistics for this article Energy is currently edited by Henrik Lund and Mark J. Kaiser More articles in Energy from Elsevier |
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