How Does Public Attention Influence Natural Gas Price?: New Evidence with Google Search Data

Xin Li, Jian Ma, Wei Shang, Shouyang Wang and Xun Zhang
Additional contact information
Xin Li: Management School, University of Chinese Academy of Sciences, Beijing, China
Jian Ma: Department of Information Systems, City University of Hong Kong, Kowloon, Hong Kong
Wei Shang: Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing, China
Shouyang Wang: Management School, University of Chinese Academy of Sciences, Beijing, China and Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing, China
Xun Zhang: Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing, China

International Journal of Knowledge and Systems Science (IJKSS), 2014, vol. 5, issue 2, 65-80

Abstract: Public attention on natural gas price, which reflects the demand dynamics, is considered as a new factor to influence the movement of price. So investigate the impact of public attention on natural gas price is an innovative research issue in energy economics. This paper innovatively constructs a measure of public attention and examines its impact on natural gas price. A data set generated from Google Trends is used to measure public attention and then rigorous econometric models are applied to evaluate its predictive ability. The empirical study shows that (i) public attention is closely related to natural gas price, with contemporaneous positive correlation coefficient being 0.59, (ii) public attention leads natural gas price, (iii) the model including public attention data outperforms benchmark model. By using a more direct and representative way of forecasting based on the knowledge collected from the users, this paper also has important implications for applying Internet knowledge to improve the forecast accuracy of other energy price.

Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
http://services.igi-global.com/resolvedoi/resolve. ... 018/ijkss.2014040105 (application/pdf)

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: https://EconPapers.repec.org/RePEc:igg:jkss00:v:5:y:2014:i:2:p:65-80

Access Statistics for this article

International Journal of Knowledge and Systems Science (IJKSS) is currently edited by Van Nam Huynh

More articles in International Journal of Knowledge and Systems Science (IJKSS) from IGI Global
Bibliographic data for series maintained by Journal Editor ().