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Gas price expectations of Chinese households

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  • An, Zidong
  • Binder, Carola
  • Sheng, Xuguang Simon

Abstract

We study the formation of Chinese consumers’ gas price and inflation expectations using a newly-conducted survey of 2,500 Chinese households. Respondents provided their priors about recent and future gas price inflation. Participants were randomly exposed to information about recent gas price inflation, and some were primed to think about the 2022 Ukraine war. We then re-solicited gas price expectations, and asked respondents about their spending plans and for open-ended explanations of their responses. Both information treatments increased respondents’ gas price inflation expectations by about 3 percentage points. We use textual analysis of households’ open-ended responses to study the reasons behind their reported expectations and relationship between beliefs, narratives, and spending plans.

Suggested Citation

  • An, Zidong & Binder, Carola & Sheng, Xuguang Simon, 2023. "Gas price expectations of Chinese households," Energy Economics, Elsevier, vol. 120(C).
    • Handle: RePEc:eee:eneeco:v:120:y:2023:i:c:s0140988323001202
    DOI: 10.1016/j.eneco.2023.106622
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    Cited by:

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    2. Yunhao Yao & Zishan Li & Xiaoxing Zhou & Merle Parmak, 2023. "Yachting Tourism Consumption Potential and Its Influencing Factors: Considering 12 Coastal Cities in China as Examples," Sustainability, MDPI, vol. 15(16), pages 1-16, August.
    3. Alberini, Anna & Ščasný, Milan & Czajkowski, Mikolaj & Bigano, Andrea, 2023. "Volatile energy markets, consumers and energy price expectations," Energy Economics, Elsevier, vol. 126(C).
    4. Dzung Bui & Bernd Hayo, 2025. "Inflation Expectations of the General Public under Supply Constraints: Evidence from a Survey Experiment," MAGKS Papers on Economics 202520, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

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    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy

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