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China-to-FOB price transmission in the rare earth elements market and the end of Chinese export restrictions

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  • Seiler, Volker

Abstract

This paper investigates the impact of the end of the export quota system (EQS) on China-to-export price transmission in the rare earth elements market, taking into account threshold effects and price transmission asymmetries. The results indicate that export prices became more responsive to changes of Chinese prices after the Chinese Ministry of Commerce (MOFCOM) abandoned the exort quota policy. While price shocks wash out much quicker in the Post-EQS period, we do not find evidence for rockets and feathers-type of behaviour.

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  • Seiler, Volker, 2021. "China-to-FOB price transmission in the rare earth elements market and the end of Chinese export restrictions," Energy Economics, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:eneeco:v:102:y:2021:i:c:s0140988321003716
    DOI: 10.1016/j.eneco.2021.105485
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    More about this item

    Keywords

    Rare earth elements; Export quotas; Asymmetric price transmission; Threshold autoregression (TAR); Threshold error correction model (TECM);
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market
    • Q37 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Issues in International Trade
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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