Nations as Strategic Players in Global Commodity Markets: Evidence from World Coal Trade
AbstractWe 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 InfoPaper provided by Energiewirtschaftliches Institut an der Universitaet zu Koeln in its series EWI Working Papers with number 2011-4.
Length: 29 pages
Date of creation: 01 Jun 2011
Date of revision:
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Strategic National Trade; Imperfect Competition; Steam Coal; China; Indonesia;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- F10 - International Economics - - Trade - - - General
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-21 (All new papers)
- NEP-COM-2011-07-21 (Industrial Competition)
- NEP-ENE-2011-07-21 (Energy Economics)
- NEP-INT-2011-07-21 (International Trade)
- NEP-SEA-2011-07-21 (South East Asia)
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