Facebook LinkedIn Twitter
Shop

IAEE Members and subscribers to The Energy Journal: Please log in to access the full text article or receive discounted pricing for this article.

International Steam Coal Market Integration

Abstract:
This paper examines the hypothesis that there is a single economic market for the international steam coal industry and investigates the degree of steam coal market integration over time. A regression test of convergence is employed to test for group convergence within a panel of steam coal exporting countries. The long-run relations between international steam coal prices are tested through cointegration analysis and the Kalman Filter analysis is employed to examine the convergence path of the price series. Monthly Free on Board (F.O.B.) prices for Australia, China, Colombia, Indonesia, Poland and South Africa between January 1995 and July 2007 are used. Considering the outcomes of the three econometric techniques as a whole, we conclude that the international steam coal market is generally integrated.

Purchase ( $25 )

Energy Specializations: Coal – Markets and Prices; Coal – Policy and Regulation

JEL Codes:
L13 - Oligopoly and Other Imperfect Markets
Q53 - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

Keywords: Steam coal markets, Integration, Coal prices, Cointegration

DOI: 10.5547/ISSN0195-6574-EJ-Vol31-No3-10


Published in Volume 31, Number 3 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.