ID | 143377 |
Title Proper | Is the price elasticity of demand for coal in China increasing? |
Language | ENG |
Author | Burke, Paul J ; Liao, Hua |
Summary / Abstract (Note) | 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%. |
`In' analytical Note | China Economic Review Vol. 36; Dec 2015: p.309-322 |
Journal Source | China Economic Review 2015-12 36 |
Key Words | China ; Economic Reform ; Demand ; Coal ; Price Elasticity ; Price Reform ; Provincial |