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Determinants of global natural gas consumption and import–export flows

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  • Chen, Jiandong
  • Yu, Jie
  • Ai, Bowei
  • Song, Malin
  • Hou, Wenxuan

Abstract

Based on the data of the BP Statistical Review of World Energy, this paper constructs the consumption and import–export of natural gas identities. It discusses the drivers of changes in global natural gas consumption and trade flows from 2008 to 2015 using the extended logarithmic mean Divisia index. The results show that differences in the natural gas supply and demand across countries or regions, as well as the distribution of energy between the domestic and international markets, can be better explained when natural gas trade movements are considered. By comparing the supply and consumption increment of natural gas, this study finds that only the energy intensity, economic growth, and demographic effects are consistent with each other. The changes in the impact of other effects mainly depend on storage variations and statistical errors. In addition, the primary drivers of the incremental changes in natural gas consumption vary in different countries. They include production scale, import scale, export scale, consumption structure proportion, energy intensity, economic growth, and population and balance effects. Finally, the consumption competitiveness of the liquefied natural gas significantly improved over the examined period.

Suggested Citation

  • Chen, Jiandong & Yu, Jie & Ai, Bowei & Song, Malin & Hou, Wenxuan, 2019. "Determinants of global natural gas consumption and import–export flows," Energy Economics, Elsevier, vol. 83(C), pages 588-602.
    • Handle: RePEc:eee:eneeco:v:83:y:2019:i:c:p:588-602
    DOI: 10.1016/j.eneco.2018.06.025
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    More about this item

    Keywords

    Natural gas consumption; Natural gas trade flows; Logarithmic mean Divisia index; Pipeline natural gas; Liquefied natural gas;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • Q37 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Issues in International Trade
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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