The emergence and evolution of regional convergence clusters in China's energy markets
AbstractEmploying the new regression tests for Convergence, Club Convergence and Clustering proposed by Phillips and Sul (2007), this paper models and analyses the behaviour of China's energy sectors. Energy market ‘convergence clusters’ are identified using new price data, and their regional spatial distributions are mapped for four major fuel types: coal, gasoline, diesel and electricity. The findings are as follows: i) as yet, there are no fully integrated national energy markets in China, as more than one convergence cluster is identified for all four fuels; ii) some regional energy markets can be regarded as ‘quite mature,’ as evidenced by the existence of some highly concentrated convergence clusters connected geographically; iii) some regional markets remain in a ‘state of transition,’ as witnessed by convergence clusters that are scattered geographically and that are growing in membership; iv) it seems that there is more regional-based integration for coal and electricity than for gasoline and diesel, as more convergent clusters were identified for coal and electricity than for gasoline and diesel; and v) overall, China still appears to be in the process of energy market integration, as demonstrated by the number and evolution of convergence clusters over time.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Economics.
Volume (Year): 34 (2012)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/eneco
China; Energy market; Convergence cluster;
Other versions of this item:
- Hengyun Ma & Les Oxley, 2010. "The Emergence and Evolution of Regional Convergence Clusters in China’s Energy Markets," Working Papers in Economics 10/14, University of Canterbury, Department of Economics and Finance.
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Zhang, Xiaobo & Kanbur, Ravi, 2005.
"Spatial inequality in education and health care in China,"
China Economic Review,
Elsevier, vol. 16(2), pages 189-204.
- Zhang, Xiaobo & Kanbur, Ravi, 2003. "Spatial Inequality In Education And Health Care In China," Working Papers 127256, Cornell University, Department of Applied Economics and Management.
- Kanbur, Ravi & Zhang, Xiaobo, 2003. "Spatial Inequality in Education and Health Care in China," CEPR Discussion Papers 4136, C.E.P.R. Discussion Papers.
- Xiaobo Zhang & Ravi Kanbur, 2004. "Spatial Inequality in Education and Health Care in China," Working Papers 159, Institute for Social and Economic Change, Bangalore.
- C. Simon Fan & Xiangdong Wei, 2006. "The Law of One Price: Evidence from the Transitional Economy of China," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 682-697, November.
- Yingyi Qian & Chenggang Xu, 1993. "Why Chinas Economic Reforms Differ: The M-Form Hierarchy and Entry/Expansion of the Non-State Sector," CEP Discussion Papers dp0154, Centre for Economic Performance, LSE.
- Alwyn Young, 2000. "The Razor's Edge: Distortions and Incremental Reform in the People's Republic of China," NBER Working Papers 7828, National Bureau of Economic Research, Inc.
- Hang, Leiming & Tu, Meizeng, 2007. "The impacts of energy prices on energy intensity: Evidence from China," Energy Policy, Elsevier, vol. 35(5), pages 2978-2988, May.
- Demurger, Sylvie & Sachs, Jeffrey D. & Woo, Wing Thye & BAO, Shuming & Chang, Gene, 2002. "The relative contributions of location and preferential policies in China's regional development: being in the right place and having the right incentives," China Economic Review, Elsevier, vol. 13(4), pages 444-465, December.
- Albert Park & Hehui Jin & Scott Rozelle & Jikun Huang, 2002. "Market Emergence and Transition: Arbitrage, Transaction Costs, and Autarky in China's Grain Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 67-82.
- Rawski, Thomas G., 2001. "What is happening to China's GDP statistics?," China Economic Review, Elsevier, vol. 12(4), pages 347-354.
- LAN, Yuexing & SYLWESTER, Kevin, 2010. "Does the law of one price hold in China? Testing price convergence using disaggregated data," China Economic Review, Elsevier, vol. 21(2), pages 224-236, June.
- Ma, Chunbo & He, Lining, 2008. "From state monopoly to renewable portfolio: Restructuring China's electric utility," Energy Policy, Elsevier, vol. 36(5), pages 1697-1711, May.
- Huang, Jikun & Rozelle, Scott, 2006. "The emergence of agricultural commodity markets in China," China Economic Review, Elsevier, vol. 17(3), pages 266-280.
- Alwyn Young, 2000. "The Razor'S Edge: Distortions And Incremental Reform In The People'S Republic Of China," The Quarterly Journal of Economics, MIT Press, vol. 115(4), pages 1091-1135, November.
- Maasoumi, Esfandiar & Wang, Le, 2006.
"Economic Reform, Growth and Convergence in China,"
Departmental Working Papers
0602, Southern Methodist University, Department of Economics.
- Pedroni, Peter & Yao, James Yudong, 2006.
"Regional income divergence in China,"
Journal of Asian Economics,
Elsevier, vol. 17(2), pages 294-315, April.
- Awokuse, Titus O., 2007. "Market Reforms, Spatial Price Dynamics, and China's Rice Market Integration: A Causal Analysis with Directed Acyclic Graphs," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(01), April.
- Melvyn Weeks & James Yudong Yao, 2003. "Provincial Conditional Income Convergence in China, 1953-1997: A Panel Data Approach," Econometric Reviews, Taylor & Francis Journals, vol. 22(1), pages 59-77.
- Ma, Hengyun & Oxley, Les & Gibson, John, 2009. "Gradual reforms and the emergence of energy market in China: Evidence from tests for convergence of energy prices," Energy Policy, Elsevier, vol. 37(11), pages 4834-4850, November.
- ZY. Zhou & GH. Wan & LB. Chen, 2000. "Integration of rice markets: the case of southern China," Contemporary Economic Policy, Western Economic Association International, vol. 18(1), pages 95-106, 01.
- Peter C. B. Phillips & Donggyu Sul, 2007.
"Transition Modeling and Econometric Convergence Tests,"
Econometric Society, vol. 75(6), pages 1771-1855, November.
- Peter C.B. Phillips & Donggyu Sul, 2007. "Transition Modeling and Econometric Convergence Tests," Cowles Foundation Discussion Papers 1595, Cowles Foundation for Research in Economics, Yale University.
- Li, Jie & Qiu, Larry D. & Sun, Qunyan, 2003. "Interregional protection: Implications of fiscal decentralization and trade liberalization," China Economic Review, Elsevier, vol. 14(3), pages 227-245.
- Sandra PONCET, 2002.
"A Fragmented China. Measure and Determinants of Chinese Domestic Market Disintegration,"
- Sandra Poncet, 2005. "A Fragmented China: Measure and Determinants of Chinese Domestic Market Disintegration," Review of International Economics, Wiley Blackwell, vol. 13(3), pages 409-430, 08.
- Yingyi Qian & Chenggang Xu, 1993. "Why China's economic reforms differ: the M-form hierarchy and entry/expansion of the non-state sector," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 1(2), pages 135-170, 06.
- Wu, Kang & Li, Binsheng, 1995. "Energy development in China : National policies and regional strategies," Energy Policy, Elsevier, vol. 23(2), pages 167-178, February.
- Wang, Bing, 2007. "An imbalanced development of coal and electricity industries in China," Energy Policy, Elsevier, vol. 35(10), pages 4959-4968, October.
- Ma, Hengyun & Oxley, Les & Gibson, John, 2009. "China's energy situation in the new millennium," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(8), pages 1781-1799, October.
- Lam, Pun-Lee, 2004. "Pricing of electricity in China," Energy, Elsevier, vol. 29(2), pages 287-300.
- Wu, Yanrui, 2003. "Deregulation and growth in China's energy sector: a review of recent development," Energy Policy, Elsevier, vol. 31(13), pages 1417-1425, October.
- Alan M. Taylor, 2000.
"Potential Pitfalls for the Purchasing-Power-Parity Puzzle? Sampling and Specification Biases in Mean-Reversion Tests of the Law of One Price,"
NBER Working Papers
7577, National Bureau of Economic Research, Inc.
- Taylor, Alan M, 2001. "Potential Pitfalls for the Purchasing-Power-Parity Puzzle? Sampling and Specification Biases in Mean-Reversion Tests of the Law of One Price," Econometrica, Econometric Society, vol. 69(2), pages 473-98, March.
- Akhmedjonov, Alisher & Lau, Chi Keung, 2012. "Do energy prices converge across Russian regions?," Economic Modelling, Elsevier, vol. 29(5), pages 1623-1631.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.