Market Structure Scenarios in International Steam Coal Trade
The seaborne steam coal market has changed in recent years; demand has grown fast, important players have emerged, and since 2007 prices have increased significantly and remained relatively high. In this paper, we analyze steam coal market equilibria in the years 2006 and 2008 by testing for two possible market structure scenarios: perfect competition and an oligopoly setup with major exporters competing in quantities. The assumed oligopoly scenario cannot explain market equilibria for any year. While we find that the competitive model simulates market equilibria well in 2006, the competitive model is yet not able to reproduce real market outcomes in 2008. The analysis shows that not all available supply capacity was utilized in 2008. We conclude that either unknown capacity bottlenecks or more sophisticated non-competitive strategies were the cause for the high prices in 2008.
If 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.
Volume (Year): Volume 33 (2012)
Issue (Month): Number 3 ()
|Contact details of provider:|| Postal: 28790 Chagrin Blvd Ste 350, Cleveland, OH 44122, USA|
Web page: http://www.iaee.org
More information through EDIRC
|Order Information:||Web: http://www.iaee.org/en/publications/ejsearch.aspx|
References listed on IDEAS
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.:
- Paul L. Joskow & Edward Kohn, 2002.
"A Quantitative Analysis of Pricing Behavior in California's Wholesale Electricity Market During Summer 2000,"
The Energy Journal,
International Association for Energy Economics, vol. 0(Number 4), pages 1-35.
- Paul Joskow & Edward Kahn, 2001. "A Quantitative Analysis of Pricing Behavior in California's Wholesale Electricity Market During Summer 2000," NBER Working Papers 8157, National Bureau of Economic Research, Inc.
- Joskow, P. & Edward Kahn, 2002. "A Quantitative Analysis of Pricing Behavior In California’s Wholesale Electricity Market During Summer 2000," Cambridge Working Papers in Economics 0211, Faculty of Economics, University of Cambridge.
- Yang, Chin W. & Hwang, Ming J. & Sohng, Soong N., 2002. "The Cournot competition in the spatial equilibrium model," Energy Economics, Elsevier, vol. 24(2), pages 139-154, March.
- Ekawan, Rudianto & Duchene, Michel & Goetz, Damien, 2006. "The evolution of hard coal trade in the Pacific market," Energy Policy, Elsevier, vol. 34(14), pages 1853-1866, September.
- Linda Warell, 2006. "Market Integration in the International Coal Industry: A Cointegration Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 99-118.
- Masih, Rumi & Masih, Abul M. M., 1996. "Stock-Watson dynamic OLS (DOLS) and error-correction modelling approaches to estimating long- and short-run elasticities in a demand function: new evidence and methodological implications from an appl," Energy Economics, Elsevier, vol. 18(4), pages 315-334, October.
- Labys, Walter C. & Yang, Chin W., 1980. "A quadratic programming model of the Appalachian steam coal market," Energy Economics, Elsevier, vol. 2(2), pages 86-95, April.
- Lin Chan, Hing & Kam Lee, Shu, 1997. "Modelling and forecasting the demand for coal in China," Energy Economics, Elsevier, vol. 19(3), pages 271-287, July.
- Kulshreshtha, Mudit & Parikh, Jyoti K., 2000. "Modeling demand for coal in India: vector autoregressive models with cointegrated variables," Energy, Elsevier, vol. 25(2), pages 149-168.
- Peng, Wuyuan, 2011. "Coal sector reform and its implications for the power sector in China," Resources Policy, Elsevier, vol. 36(1), pages 60-71, March.
- Soderholm, Patrik, 2001. "Fossil fuel flexibility in west European power generation and the impact of system load factors," Energy Economics, Elsevier, vol. 23(1), pages 77-97, January.
- James Ko & Carol Dahl, 2001. "Interfuel substitution in US electricity generation," Applied Economics, Taylor & Francis Journals, vol. 33(14), pages 1833-1843.
- Nagl, Stephan & Fürsch, Michaela & Paulus, Moritz & Richter, Jan & Trueby, Johannes & Lindenberger, Dietmar, 2010. "Scenarios for an Energy Policy Concept of the German Government," EWI Working Papers 2010-6, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
- Clemens Haftendorn & Franziska Holz, 2010. "Modeling and Analysis of the International Steam Coal Trade," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 205-230.
- Paulus, Moritz & Trüby, Johannes, 2011. "Coal lumps vs. electrons: How do Chinese bulk energy transport decisions affect the global steam coal market?," Energy Economics, Elsevier, vol. 33(6), pages 1127-1137.
- Ekawan, Rudianto & Duchene, Michel, 2006. "The evolution of hard coal trade in the Atlantic market," Energy Policy, Elsevier, vol. 34(13), pages 1487-1498, September.
- Dahl, Carol & Ko, James, 1998. "The effect of deregulation on US fossil fuel substitution in the generation of electricity," Energy Policy, Elsevier, vol. 26(13), pages 981-988, November.
- Paulus, Moritz & Borggrefe, Frieder, 2011. "The potential of demand-side management in energy-intensive industries for electricity markets in Germany," Applied Energy, Elsevier, vol. 88(2), pages 432-441, February.
- Dahl, Carol A., 1993. "A survey of energy demand elasticities in support of the development of the NEMS," MPRA Paper 13962, University Library of Munich, Germany.
- Graham, Paul & Thorpe, Sally & Hogan, Lindsay, 1999. "Non-competitive market behaviour in the international coking coal market," Energy Economics, Elsevier, vol. 21(3), pages 195-212, June.
- Kolstad, Charles D. & Abbey, David S., 1984. "The effect of market conduct on international steam coal trade," European Economic Review, Elsevier, vol. 24(1), pages 39-59.
- Nagl, Stephan & Fürsch, Michaela & Paulus, Moritz & Richter, Jan & Trüby, Johannes & Lindenberger, Dietmar, 2011. "Energy policy scenarios to reach challenging climate protection targets in the German electricity sector until 2050," Utilities Policy, Elsevier, vol. 19(3), pages 185-192.
When requesting a correction, please mention this item's handle: RePEc:aen:journl:33-3-04. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Williams)
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.