Estimating the Efficiency and Impacts of Petroleum Product Pricing Reforms in China
Chuxiong Deng (),
Zhujun Jiang () and
Chuanwang Sun ()
Additional contact information
Chuxiong Deng: College of Resources and Environmental Sciences, Hunan Normal University, Changsha 410081, Hunan, China
Zhujun Jiang: Institute of Finance and Economics Research, School of Urban and Regional Science, Shanghai University of Finance and Economics, Shanghai 200433, China
Chuanwang Sun: China Center for Energy Economics Research, School of Economics, Xiamen University, Xiamen 361005, Fujian, China
Sustainability, 2018, vol. 10, issue 4, 1-17
The efficiency and effects analysis of a new pricing mechanism would have significant policy implications for the further design of a pricing mechanism in an emerging market. Unlike most of the existing literature, which focuses on the impacts to the macro-economy, this paper firstly uses an econometrics model to discuss the efficiency of the new pricing mechanism, and then establishes an augmented Phillips curve to estimate the impact of pricing reform on inflation in China. The results show that: (1) the new pricing mechanism would strengthen the linkage between Chinese oil prices and international oil prices; (2) oil price adjustments are still inadequate in China. (3) The lag in inflation is the most important factor that affects inflation, while the impact of the Chinese government’s price adjustments on inflation is limited and insignificant. In order to improve the efficiency of the petroleum products pricing mechanism and shorten lags, government should shorten the adjustment period and diminish the fluctuation threshold.
Keywords: petroleum products pricing mechanism; price adjustment; augmented Phillips curve (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:10:y:2018:i:4:p:1080-:d:139614
Access Statistics for this article
Sustainability is currently edited by Prof. Dr. Marc A. Rosen
More articles in Sustainability from MDPI, Open Access Journal
Bibliographic data for series maintained by XML Conversion Team ().