Is the price elasticity of demand for coal in China increasing?

Paul Burke () and Hua Liao ()

No 85, CEEP-BIT Working Papers from Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology

Abstract: China's dependence on coal is a major contributor to local and global environmental problems. In this paper we estimate the price elasticity of demand for coal in China using a panel of province-level data for 1998-2012. We find that provincial coal demand has become increasingly price elastic. As of 2012 we estimate that this elasticity was in the range -0.3 to -0.7 in point estimate terms when responses over two years are considered. The results imply that China's coal market is becoming more suited to price-based approaches to reducing emissions. The elimination of coal consumption subsidies could reduce national coal use and related emissions by around 2%.

Keywords: coal; price elasticity; demand; China; provincial (search for similar items in EconPapers)
JEL-codes: Q40 Q58 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2015-10-01
New Economics Papers: this item is included in nep-agr, nep-cna, nep-ene, nep-env and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

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Related works:
Journal Article: Is the price elasticity of demand for coal in China increasing? (2015)
Working Paper: Is the price elasticity of demand for coal in China increasing? (2015)
Working Paper: Is the Price Elasticity of Demand for Coal in China Increasing? (2015)
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