Study on the Relationships Between Coal Consumption and Economic Growth of the Six Biggest Coal Consumption Countries: With Coal Price as a Third Variable

Lei, Yalin; Li, Li; Pan, Dongyang

doi:10.1016/j.egypro.2014.11.1185

Cited by 35 publications

(14 citation statements)

References 34 publications

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“…In fact, the development of methods has been remarkable. As recently as a few years ago, most published studies were conducted using either independent panel analysis or time-series models [13,14,16,[18][19][20][21][24][25][26][27][33][34][35]38,40,41]. Thereafter, studies considering structural breaks but not cross-sectional dependence were published [42].…”

Section: Introductionmentioning

confidence: 99%

Coal Consumption and Economic Growth: Panel Cointegration and Causality Evidence from OECD and Non-OECD Countries

Jin

Kim

2018

Sustainability

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This paper examines the relationship between coal consumption and economic growth for 30 OECD (Organisation for Economic Co-operation and Development) countries and 32 non-OECD countries for 1990-2013 using a multivariate dependent panel analysis. For the analysis, we conducted the common factor defactorization process, unit root test, cointegration test, long-run cointegrating vector, and Granger causality test. Our results suggest the following: First, there is no long-run relationship between coal consumption and economic growth in OECD countries; however, in non-OECD countries, the relationship does exist. Second, excessive coal usage may hinder economic growth in the long run. Lastly, the growth hypothesis (coal consumption affects economic growth positively) is supported in the short run for non-OECD countries. As coal consumption has a positive effect on economic growth in the short run and a negative effect in the long run, energy conservation policies may have adverse effects only in the short run. Thus, non-OECD countries should gradually switch their energy mix to become less coal-dependent as they consider climate change. Moreover, a transfer of technology and financial resources from developed to developing countries must be encouraged at a global level.

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Section: Introductionmentioning

confidence: 99%

Coal Consumption and Economic Growth: Panel Cointegration and Causality Evidence from OECD and Non-OECD Countries

Jin

Kim

2018

Sustainability

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“…For India, Wolde-Rufael (2010) and Chang et al (forthcoming) agreed in favour to the growth hypothesis. More recently, Bildirici and Bakirtas (2014) concluded that there is a bidirectional causality between coal consumption and economic growth for China and India with data ending for the year 2011 while in a panel framework with data from 2000 to 2010 and using coal prices as a third variable, Lei and Pan (2014) have shown that economic growth caused coal consumption in China and the neutrality hypothesis was confirmed for India. Our study although aiming to address the same issue, it does so with more updated information (period from 1969 until 2013) and with a methodology that has not been previously employed in the literature.…”

Section: Brief Literature Reviewmentioning

confidence: 99%

Revisiting coal consumption and output nexus in China and India: A frequency domain approach

Zhang

Chu

Chang

et al. 2017

Energy Sources, Part B: Economics, Planning, and Policy

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Dependency on coal consumption to maintain energy security is common to the majority of developing countries where the coal is found in abundance. China and India are the leaders in coal consumption from the developing countries group so establishing a relationship between the coal consumption and the economic growth for these two will derive useful lessons for policy makers. This paper reexamines the causal relationship between coal consumption and economic growth in China and India for the period 1969-2013, for the first time using a frequency domainbased Granger causality test proposed by Brietung and Candelon (2006). Our empirical results support unidirectional causality running from coal consumption to economic growth for both China and India. Our findings provide important policy implications for energy policies and strategies for these two countries under study.

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“…With the separation of the supply and demand in space, China's power producers may increase the proportion of imported thermal coal if the cost of the domestic transportation is too high, and then the increase of China's imported thermal coal may cause significant changes in the global cost coal market. Therefore, the study on thermal coal price is of great significance to understand the trend of coal price change, alleviate the contradiction between the supply and demand, guarantee the power production system, protect the environment, and promote economic development [6].…”

Section: Introductionmentioning

confidence: 99%

Research on the Transmission Ability of China’s Thermal Coal Price Information Based on Directed Limited Penetrable Interdependent Network

Dong

Wan

et al. 2020

Sustainability

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According to the criterion of the visibility graph and the irreversibility of the time series, this paper proposes a new perspective to construct the directed limited penetrable interdependent network (DLPIN) for thermal coal between the opening and closing price series after the Johansen cointegration test. The results of the statistical research and cointegration analysis show that there is a cointegration relationship between the opening and the closing price series, and the relationship between them does not follow a normal distribution. By analyzing the topological characteristic of the DLPIN, the results indicate that there is an obvious "community structure" and scale-free features, which show that there are groups and differences among the thermal coal price, and most of them have a weak transmission ability of the thermal coal price information; only a few of them have a strong transmission ability. The differences of the in-degree and out-degree show that some thermal coal prices have a weak influence on the other prices but are strongly affected by the other prices. In addition, most of the thermal coal prices are far away from the infectious source of the price information; only a few are close to the infectious source of the price information to a certain extent. Obviously, the influence of the thermal coal price has a certain range, which is closely related in a short distance. Furthermore, these results can reveal the internal laws of the main price fluctuation and information transmission for the thermal coal, and some references can be provided to reduce risk investment and improve capital return for the related investors.

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Study on the Relationships Between Coal Consumption and Economic Growth of the Six Biggest Coal Consumption Countries: With Coal Price as a Third Variable

Cited by 35 publications

References 34 publications

Coal Consumption and Economic Growth: Panel Cointegration and Causality Evidence from OECD and Non-OECD Countries

Coal Consumption and Economic Growth: Panel Cointegration and Causality Evidence from OECD and Non-OECD Countries

Revisiting coal consumption and output nexus in China and India: A frequency domain approach

Research on the Transmission Ability of China’s Thermal Coal Price Information Based on Directed Limited Penetrable Interdependent Network

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