The globalization of steam coal markets and the role of logistics: An empirical analysis
In this paper, we provide a comprehensive multivariate cointegration analysis of three parts of the steam coal value chain — export, transport and import prices. The analysis is based on a rich dataset of international coal prices; in particular, we combine data on steam coal prices with freight rates, covering the period December 2001 until August 2009 at weekly frequency. We then test whether the demand and supply side components of steam coal trade are consistently integrated with one another. In addition, export and import prices as well as freight rates for individual trading routes, across regions and globally are combined. We find evidence of significant yet incomplete integration. We also find heterogeneous short-term dynamics of individual markets. Furthermore, we examine whether logistics enter coal price dynamics through transportation costs, which are mainly determined by oil prices. Our results suggest that this is generally not the case.
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.
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.:
- Guillaume L¿Hégaret & Boriss Siliverstovs & Anne Neumann & Christian von Hirschhausen, 2003.
"International Market Integration for Natural Gas?: A Cointegration Analysis of Prices in Europe, North America and Japan,"
Discussion Papers of DIW Berlin
393, DIW Berlin, German Institute for Economic Research.
- Siliverstovs, Boriss & L'Hegaret, Guillaume & Neumann, Anne & von Hirschhausen, Christian, 2005. "International market integration for natural gas? A cointegration analysis of prices in Europe, North America and Japan," Energy Economics, Elsevier, vol. 27(4), pages 603-615, July.
- Guillaume L'Hegaret & Boriss Siliverstovs & Christian von Hirschhausen, 2004. "International Market Integration for Natural Gas? A Cointegration Analysis of Prices in Europe, North America and Japan," Working Papers 0402, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- David F. Hendry & Katarina Juselius, 2001.
"Explaining Cointegration Analysis: Part II,"
The Energy Journal,
International Association for Energy Economics, vol. 0(Number 1), pages 75-120.
- Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
- 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.
- Ellerman, A Denny, 1995. "The world price of coal," Energy Policy, Elsevier, vol. 23(6), pages 499-506, June.
- 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.
- Raymond Li & Roselyne Joyeux & Ronald D. Ripple, 2010. "International Steam Coal Market Integration," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 181-202.
- Warell, Linda, 2005. "Defining geographic coal markets using price data and shipments data," Energy Policy, Elsevier, vol. 33(17), pages 2216-2230, November.
- 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.
- Lance J. Bachmeier & James M. Griffin, 2006. "Testing for Market Integration: Crude Oil, Coal, and Natural Gas," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 55-72.
When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:34:y:2012:i:1:p:105-116. 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: (Dana Niculescu)
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.