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Nations as Strategic Players in Global Commodity Markets: Evidence from World Coal Trade

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  • Paulus, Moritz

    ()
    (Energiewirtschaftliches Institut an der Universitaet zu Koeln)

  • Trueby, Johannes

    ()
    (Energiewirtschaftliches Institut an der Universitaet zu Koeln)

  • Growitsch, Christian

    ()
    (Energiewirtschaftliches Institut an der Universitaet zu Koeln)

Abstract

We explore the hypothesis that export policies and trade patterns of national players in the steam coal market are consistent with non-competitive market behavior. We test this hypothesis by developing an equilibrium model which is able to model coal producing nations as strategic players. We explicitly account for integrated seaborne trade and domestic markets. The global steam coal market is simulated under several imperfect market structure setups. We find that trade and prices of a China - Indonesia duopoly fit the real market outcome best and that real Chinese export quotas in 2008 were consistent with simulated exports under a Cournot-Nash strategy.

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Bibliographic Info

Paper provided by Energiewirtschaftliches Institut an der Universitaet zu Koeln in its series EWI Working Papers with number 2011-4.

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Length: 29 pages
Date of creation: 01 Jun 2011
Date of revision:
Handle: RePEc:ris:ewikln:2011_004

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Keywords: Strategic National Trade; Imperfect Competition; Steam Coal; China; Indonesia;

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References

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  1. Paulus, Moritz & Trueby, Johannes, 2010. "Global steam coal supply costs in the face of Chinese infrastructure investment decisions," EWI Working Papers 2010-4, Energiewirtschaftliches Institut an der Universitaet zu Koeln.
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  15. Trueby, Johannes & Paulus, Moritz, 2011. "Market Structure Scenarios in International Steam Coal Trade," EWI Working Papers 2011-2, Energiewirtschaftliches Institut an der Universitaet zu Koeln.
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  19. Zesheng Sun & Xiangdong Xu, 2009. "Empirical study on Chinese coke export market power," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing, vol. 2(2), pages 131-141, April.
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  21. Lise, Wietze & Hobbs, Benjamin F., 2008. "Future evolution of the liberalised European gas market: Simulation results with a dynamic model," Energy, Elsevier, vol. 33(7), pages 989-1004.
  22. Yihsu Chen & Benjamin Hobbs & Sven Leyffer & Todd Munson, 2006. "Leader-Follower Equilibria for Electric Power and NO x Allowances Markets," Computational Management Science, Springer, vol. 3(4), pages 307-330, September.
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Cited by:
  1. Paulus, Moritz, 2012. "How are investment decisions in the steam coal market affected by demand uncertainty and buyer-side market power?," EWI Working Papers 2012-3, Energiewirtschaftliches Institut an der Universitaet zu Koeln.

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