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A Model of the International Steam Coal Market (COALMOD-World)

Author

Listed:
  • Franziska Holz
  • Clemens Haftendorn
  • Roman Mendelevitch
  • Christian von Hirschhausen

Abstract

Coal is at the core of the debate about climate change mitigation policies, yet the internationalmarket for it is not well represented in most energy models. This paper presents the COALMODframework which is a model of the international steam coal market that can be readily used toexplore implications of climate policies, but also to analyze market structure or to investigate issue ofsupply security. It features a detailed representation of both domestic and international steam coalsupply, based on endogenously calculated Cost, Insurance, Fright (CIF) costs, and prices that take intoaccount additional rents. It features endogenous investment into production, land transport, andexport capacity, as well as an endogenous mechanism assessing production cost increase due toresource depletion. We provide a detailed model and data description and illustrate the features ofthe model by analyzing to scenarios derived from the IEA World Energy Outlook (New Policies and450ppm scenario), highlighting the functionalities of the model.

Suggested Citation

  • Franziska Holz & Clemens Haftendorn & Roman Mendelevitch & Christian von Hirschhausen, 2016. "A Model of the International Steam Coal Market (COALMOD-World)," Data Documentation 85, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwddc:dd85
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    References listed on IDEAS

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    Cited by:

    1. Ansari, Dawud & Holz, Franziska, 2020. "Between stranded assets and green transformation: Fossil-fuel-producing developing countries towards 2055," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 130, pages 1-1.
    2. Yanguas Parra, Paola & Hauenstein, Christian & Oei, Pao-Yu, 2021. "The death valley of coal – Modelling COVID-19 recovery scenarios for steam coal markets," Applied Energy, Elsevier, vol. 288(C).
    3. Philipp M. Richter & Roman Mendelevitch & Frank Jotzo, 2018. "Coal taxes as supply-side climate policy: a rationale for major exporters?," Climatic Change, Springer, vol. 150(1), pages 43-56, September.
    4. Hauenstein, Christian & Holz, Franziska, 2021. "The U.S. coal sector between shale gas and renewables: Last resort coal exports?," Energy Policy, Elsevier, vol. 149(C).
    5. Ansari, Dawud & Holz, Franziska, 2019. "Anticipating global energy, climate and policy in 2055: Constructing qualitative and quantitative narratives," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 58, pages 1-23.
    6. Roman Mendelevitch, 2018. "Testing supply-side climate policies for the global steam coal market—can they curb coal consumption?," Climatic Change, Springer, vol. 150(1), pages 57-72, September.

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    More about this item

    Keywords

    Future coal markets; Partial equilibrium modeling; International trade;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C69 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Other
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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