The globalization of steam coal markets and the role of logistics: An empirical analysis
AbstractIn this paper, we provide a comprehensive multivariate cointegration analysis of three parts of the steam coal value chain — export, transport and import prices. The analysis is based on a rich dataset of international coal prices; in particular, we combine data on steam coal prices with freight rates, covering the period December 2001 until August 2009 at weekly frequency. We then test whether the demand and supply side components of steam coal trade are consistently integrated with one another. In addition, export and import prices as well as freight rates for individual trading routes, across regions and globally are combined. We find evidence of significant yet incomplete integration. We also find heterogeneous short-term dynamics of individual markets. Furthermore, we examine whether logistics enter coal price dynamics through transportation costs, which are mainly determined by oil prices. Our results suggest that this is generally not the case.
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Bibliographic InfoArticle provided by Elsevier in its journal Energy Economics.
Volume (Year): 34 (2012)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/eneco
Steam coal; Market integration; Multivariate cointegration;
Other versions of this item:
- Aleksandar Zaklan & Astrid Cullmann & Anne Neumann & Christian von Hirschhausen, 2009. "The Globalization of Steam Coal Markets and the Role of Logistics: An Empirical Analysis," Discussion Papers of DIW Berlin 956, DIW Berlin, German Institute for Economic Research.
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
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