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Dynamic game analysis on China’s public and private oil stockpiles

Author

Listed:
  • Huanan Li

    (Beijing Institute of Technology
    Beijing Institute of Technology
    Collaborative Innovation Center of Electric Vehicles in Beijing)

  • Xin Chen

    (Dalian University of Technology)

Abstract

As the economic growth and industrialization, China’s demand for oil rapidly increased. The oil supply security is becoming a key consideration for China’s policy-makers. In this paper, an empirical analysis on optimal operating strategies of China’s public and private oil stockpiles in different market states, including normal oil supply and oil supply interruption, was made by developing a simple dynamic game model. Optimal operating strategies and inventory levels for public and private oil stockpile were derived. Influences on oil prices by stockpiles’ behaviours were derived. The construction processes of the public oil stockpiles were also taken into account.

Suggested Citation

  • Huanan Li & Xin Chen, 2016. "Dynamic game analysis on China’s public and private oil stockpiles," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 715-723, October.
    • Handle: RePEc:spr:nathaz:v:84:y:2016:i:1:d:10.1007_s11069-016-2405-y
    DOI: 10.1007/s11069-016-2405-y
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    References listed on IDEAS

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