The Emergence and Evolution of Regional Convergence Clusters in China’s Energy Markets
Employing the new regression tests for Convergence, Club Convergence and Clustering proposed by Phillips and Sul (2007), this paper models and analyzes the behavior of China‘s energy sectors. Energy market =convergence clusters‘ are identified using new price data and their regional spatial distributions are mapped for four major fuel types; coal, gasoline, diesel and electricity. It is found that: i) as yet, there are no fully integrated national energy markets in China as more than one convergence cluster is identified for all four fuels; ii) some regional energy markets can be regarded as =quite mature‘ as evidenced by the existence of some highly concentrated convergence clusters connected geographically; iii) some regional markets remain in a =state of transition‘ as witnessed by convergence clusters that are scattered geographically and growing in membership; vi) it seems that there is more regional-based integration for coal and electricity than for gasoline and diesel as more convergent clusters were identified for coal and electricity than for gasoline and diesel v) Overall, China still appears to be in the process of energy market integration as demonstrated by the number and evolution of convergence clusters over time.
|Date of creation:||20 Apr 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 64 3 369 3123 (Administrator)
Fax: 64 3 364 2635
Web page: http://www.econ.canterbury.ac.nz
More information through EDIRC
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.:
- Peter C. B. Phillips & Donggyu Sul, 2007.
"Transition Modeling and Econometric Convergence Tests,"
Econometric Society, vol. 75(6), pages 1771-1855, November.
- Peter C.B. Phillips & Donggyu Sul, 2007. "Transition Modeling and Econometric Convergence Tests," Cowles Foundation Discussion Papers 1595, Cowles Foundation for Research in Economics, Yale University.
- Awokuse, Titus O., 2007. "Market Reforms, Spatial Price Dynamics, and China's Rice Market Integration: A Causal Analysis with Directed Acyclic Graphs," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(01), April.
- Peter Pedroni & James Yudong Yao, 2005.
"Regional Income Divergence in China,"
Department of Economics Working Papers
2005-03, Department of Economics, Williams College.
- Sandra Poncet, 2005.
"A Fragmented China: Measure and Determinants of Chinese Domestic Market Disintegration,"
Review of International Economics,
Wiley Blackwell, vol. 13(3), pages 409-430, 08.
- Sandra PONCET, 2002. "A Fragmented China. Measure and Determinants of Chinese Domestic Market Disintegration," Working Papers 200221, CERDI.
- Ma, Hengyun & Oxley, Les & Gibson, John, 2009. "China's energy situation in the new millennium," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(8), pages 1781-1799, October.
- Zhang, Xiaobo & Kanbur, Ravi, 2003.
"Spatial Inequality In Education And Health Care In China,"
127256, Cornell University, Department of Applied Economics and Management.
- Zhang, Xiaobo & Kanbur, Ravi, 2005. "Spatial inequality in education and health care in China," China Economic Review, Elsevier, vol. 16(2), pages 189-204.
- Xiaobo Zhang & Ravi Kanbur, 2004. "Spatial Inequality in Education and Health Care in China," Working Papers 159, Institute for Social and Economic Change, Bangalore.
- Kanbur, Ravi & Zhang, Xiaobo, 2003. "Spatial Inequality in Education and Health Care in China," CEPR Discussion Papers 4136, C.E.P.R. Discussion Papers.
- Yingyi Qian & Chenggang Xu, 1993.
"Why Chinas Economic Reforms Differ: The M-Form Hierarchy and Entry/Expansion of the Non-State Sector,"
CEP Discussion Papers
dp0154, Centre for Economic Performance, LSE.
- Yingyi Qian & Chenggang Xu, 1993. "Why China's economic reforms differ: the M-form hierarchy and entry/expansion of the non-state sector," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 1(2), pages 135-170, 06.
- Ma, Chunbo & He, Lining, 2008. "From state monopoly to renewable portfolio: Restructuring China's electric utility," Energy Policy, Elsevier, vol. 36(5), pages 1697-1711, May.
- ZY. Zhou & GH. Wan & LB. Chen, 2000. "Integration of rice markets: the case of southern China," Contemporary Economic Policy, Western Economic Association International, vol. 18(1), pages 95-106, 01.
- Alwyn Young, 2000. "The Razor's Edge: Distortions and Incremental Reform in the People's Republic of China," NBER Working Papers 7828, National Bureau of Economic Research, Inc.
- Wu, Kang & Li, Binsheng, 1995. "Energy development in China : National policies and regional strategies," Energy Policy, Elsevier, vol. 23(2), pages 167-178, February.
- C. Simon Fan & Xiangdong Wei, 2006. "The Law of One Price: Evidence from the Transitional Economy of China," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 682-697, November.
- Lam, Pun-Lee, 2004. "Pricing of electricity in China," Energy, Elsevier, vol. 29(2), pages 287-300.
- Albert Park & Hehui Jin & Scott Rozelle & Jikun Huang, 2002. "Market Emergence and Transition: Arbitrage, Transaction Costs, and Autarky in China's Grain Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 67-82.
- Melvyn Weeks & James Yudong Yao, 2003. "Provincial Conditional Income Convergence in China, 1953-1997: A Panel Data Approach," Econometric Reviews, Taylor & Francis Journals, vol. 22(1), pages 59-77, February.
- Maasoumi, Esfandiar & Wang, Le, 2006.
"Economic Reform, Growth and Convergence in China,"
Departmental Working Papers
0602, Southern Methodist University, Department of Economics.
- Alwyn Young, 2000. "The Razor'S Edge: Distortions And Incremental Reform In The People'S Republic Of China," The Quarterly Journal of Economics, MIT Press, vol. 115(4), pages 1091-1135, November.
- Taylor, Alan M, 2001.
"Potential Pitfalls for the Purchasing-Power-Parity Puzzle? Sampling and Specification Biases in Mean-Reversion Tests of the Law of One Price,"
Econometric Society, vol. 69(2), pages 473-98, March.
- Alan M. Taylor, 2000. "Potential Pitfalls for the Purchasing-Power-Parity Puzzle? Sampling and Specification Biases in Mean-Reversion Tests of the Law of One Price," NBER Working Papers 7577, National Bureau of Economic Research, Inc.
- Ma, Hengyun & Oxley, Les & Gibson, John, 2009. "Gradual reforms and the emergence of energy market in China: Evidence from tests for convergence of energy prices," Energy Policy, Elsevier, vol. 37(11), pages 4834-4850, November.
- Li, Jie & Qiu, Larry D. & Sun, Qunyan, 2003. "Interregional protection: Implications of fiscal decentralization and trade liberalization," China Economic Review, Elsevier, vol. 14(3), pages 227-245.
- Huang, Jikun & Rozelle, Scott, 2006. "The emergence of agricultural commodity markets in China," China Economic Review, Elsevier, vol. 17(3), pages 266-280.
- LAN, Yuexing & SYLWESTER, Kevin, 2010. "Does the law of one price hold in China? Testing price convergence using disaggregated data," China Economic Review, Elsevier, vol. 21(2), pages 224-236, June.
- Rawski, Thomas G., 2001. "What is happening to China's GDP statistics?," China Economic Review, Elsevier, vol. 12(4), pages 347-354.
- Wang, Bing, 2007. "An imbalanced development of coal and electricity industries in China," Energy Policy, Elsevier, vol. 35(10), pages 4959-4968, October.
- Wu, Yanrui, 2003. "Deregulation and growth in China's energy sector: a review of recent development," Energy Policy, Elsevier, vol. 31(13), pages 1417-1425, October.
- Demurger, Sylvie & Sachs, Jeffrey D. & Woo, Wing Thye & BAO, Shuming & Chang, Gene, 2002. "The relative contributions of location and preferential policies in China's regional development: being in the right place and having the right incentives," China Economic Review, Elsevier, vol. 13(4), pages 444-465, December.
- Hang, Leiming & Tu, Meizeng, 2007. "The impacts of energy prices on energy intensity: Evidence from China," Energy Policy, Elsevier, vol. 35(5), pages 2978-2988, May.
When requesting a correction, please mention this item's handle: RePEc:cbt:econwp:10/14. 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: (Albert Yee)
If references are entirely missing, you can add them using this form.