How did the price and income elasticities of natural gas demand in China evolve from 1999 to 2015? The role of natural gas price reform

Abstract As a cleaner, high-efficiency, and low-carbon fuel, natural gas has been an important fuel resource for China. To achieve a substantial increase in natural gas demand, China has sought to reform its natural gas pricing mechanism. Employing a set of unbalanced panel data for China’s 30 provi...

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Autores principales:	Kangyin Dong, Xiucheng Dong, Renjin Sun
Formato:	article
Lenguaje:	EN
Publicado:	KeAi Communications Co., Ltd. 2019
Materias:	Natural gas demand Price and income elasticities Price reform Regional analysis China Science Q Petrology QE420-499
Acceso en línea:	https://doaj.org/article/5ab0e3b6b17b488e91d401e7586e9107
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spelling	oai:doaj.org-article:5ab0e3b6b17b488e91d401e7586e91072021-12-02T08:59:21ZHow did the price and income elasticities of natural gas demand in China evolve from 1999 to 2015? The role of natural gas price reform10.1007/s12182-019-0320-z1672-51071995-8226https://doaj.org/article/5ab0e3b6b17b488e91d401e7586e91072019-04-01T00:00:00Zhttp://link.springer.com/article/10.1007/s12182-019-0320-zhttps://doaj.org/toc/1672-5107https://doaj.org/toc/1995-8226Abstract As a cleaner, high-efficiency, and low-carbon fuel, natural gas has been an important fuel resource for China. To achieve a substantial increase in natural gas demand, China has sought to reform its natural gas pricing mechanism. Employing a set of unbalanced panel data for China’s 30 provinces covering 1999–2015, this study aims to estimate the evolving price and income elasticities of natural gas demand and explore the effect of natural gas price reform in China. For this purpose, a series of econometric techniques allowing for cross-sectional dependence and slope homogeneity is utilized. The results suggest that although natural gas demand in China still lacks negative price elasticity, the phenomenon is improving. Moreover, the estimates suggest that natural gas demand in China is indeed becoming increasingly sensitive to income changes. Our estimates also provide strong evidence in favor of the effect of natural gas price reform on the change in price elasticity as the price elasticity decreases in five of the seven regions. In addition, the results indicate large variations in the change in price and income elasticities of natural gas demand across China’s regions. Natural gas demand is becoming more price inelastic in Southwest China and Northwest China, while such demand in North China and East China responds less sensitively to income changes. These findings offer several policy suggestions for the reform of China’s natural gas market at the national and regional levels.Kangyin DongXiucheng DongRenjin SunKeAi Communications Co., Ltd.articleNatural gas demandPrice and income elasticitiesPrice reformRegional analysisChinaScienceQPetrologyQE420-499ENPetroleum Science, Vol 16, Iss 3, Pp 685-700 (2019)
institution	DOAJ
collection	DOAJ
language	EN
topic	Natural gas demand Price and income elasticities Price reform Regional analysis China Science Q Petrology QE420-499
spellingShingle	Natural gas demand Price and income elasticities Price reform Regional analysis China Science Q Petrology QE420-499 Kangyin Dong Xiucheng Dong Renjin Sun How did the price and income elasticities of natural gas demand in China evolve from 1999 to 2015? The role of natural gas price reform
description	Abstract As a cleaner, high-efficiency, and low-carbon fuel, natural gas has been an important fuel resource for China. To achieve a substantial increase in natural gas demand, China has sought to reform its natural gas pricing mechanism. Employing a set of unbalanced panel data for China’s 30 provinces covering 1999–2015, this study aims to estimate the evolving price and income elasticities of natural gas demand and explore the effect of natural gas price reform in China. For this purpose, a series of econometric techniques allowing for cross-sectional dependence and slope homogeneity is utilized. The results suggest that although natural gas demand in China still lacks negative price elasticity, the phenomenon is improving. Moreover, the estimates suggest that natural gas demand in China is indeed becoming increasingly sensitive to income changes. Our estimates also provide strong evidence in favor of the effect of natural gas price reform on the change in price elasticity as the price elasticity decreases in five of the seven regions. In addition, the results indicate large variations in the change in price and income elasticities of natural gas demand across China’s regions. Natural gas demand is becoming more price inelastic in Southwest China and Northwest China, while such demand in North China and East China responds less sensitively to income changes. These findings offer several policy suggestions for the reform of China’s natural gas market at the national and regional levels.
format	article
author	Kangyin Dong Xiucheng Dong Renjin Sun
author_facet	Kangyin Dong Xiucheng Dong Renjin Sun
author_sort	Kangyin Dong
title	How did the price and income elasticities of natural gas demand in China evolve from 1999 to 2015? The role of natural gas price reform
title_short	How did the price and income elasticities of natural gas demand in China evolve from 1999 to 2015? The role of natural gas price reform
title_full	How did the price and income elasticities of natural gas demand in China evolve from 1999 to 2015? The role of natural gas price reform
title_fullStr	How did the price and income elasticities of natural gas demand in China evolve from 1999 to 2015? The role of natural gas price reform
title_full_unstemmed	How did the price and income elasticities of natural gas demand in China evolve from 1999 to 2015? The role of natural gas price reform
title_sort	how did the price and income elasticities of natural gas demand in china evolve from 1999 to 2015? the role of natural gas price reform
publisher	KeAi Communications Co., Ltd.
publishDate	2019
url	https://doaj.org/article/5ab0e3b6b17b488e91d401e7586e9107
work_keys_str_mv	AT kangyindong howdidthepriceandincomeelasticitiesofnaturalgasdemandinchinaevolvefrom1999to2015theroleofnaturalgaspricereform AT xiuchengdong howdidthepriceandincomeelasticitiesofnaturalgasdemandinchinaevolvefrom1999to2015theroleofnaturalgaspricereform AT renjinsun howdidthepriceandincomeelasticitiesofnaturalgasdemandinchinaevolvefrom1999to2015theroleofnaturalgaspricereform
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How did the price and income elasticities of natural gas demand in China evolve from 1999 to 2015? The role of natural gas price reform

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