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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.

Suggested Citation

  • Paulus, Moritz & Trueby, Johannes & Growitsch, Christian, 2011. "Nations as Strategic Players in Global Commodity Markets: Evidence from World Coal Trade," EWI Working Papers 2011-4, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    • Handle: RePEc:ris:ewikln:2011_004
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    References listed on IDEAS

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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 (EWI).
    2. Maryke C. Rademeyer, 2021. "Investigating the outcome for South African coal supply to the domestic market when faced with declining demand for exported coal," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(3), pages 441-453, October.
    3. Lorenczik, Stefan & Panke, Timo, 2016. "Assessing market structures in resource markets — An empirical analysis of the market for metallurgical coal using various equilibrium models," Energy Economics, Elsevier, vol. 59(C), pages 179-187.
    4. Otgochuluu, Ch. & Altangerel, L. & Battur, G. & Khashchuluun, Ch. & Dorjsundui, G., 2021. "A game theory application in the copper market," Resources Policy, Elsevier, vol. 70(C).

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    More about this item

    Keywords

    Strategic National Trade; Imperfect Competition; Steam Coal; China; Indonesia;
    All these keywords.

    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

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