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Economic Impacts of Debottlenecking Congestion in the Chinese Coal Supply Chain

Author

Listed:
  • Philipp Galkin
  • Frederic Murphy
  • Axel Pierru
  • Bertrand Rioux

    (King Abdullah Petroleum Studies and Research Center)

Abstract

China’s coal industry grew at unprecedented rates during the first decade of the 2000s in order to support equally unprecedented economic growth. In that type of environment, it is impossible for the capacities of every link in the supply chain to be correctly sized all the time. In order to understand the consequences of such mismatches, KAPSARC has developed a production and multi modal transshipment model of China’s domestic coal market, calibrated to 2011 data. This allows us to examine what the global and domestic consequences might have been had the bottlenecks not existed in 2011.

Suggested Citation

  • Philipp Galkin & Frederic Murphy & Axel Pierru & Bertrand Rioux, 2015. "Economic Impacts of Debottlenecking Congestion in the Chinese Coal Supply Chain," Discussion Papers ks-1523-dp017a, King Abdullah Petroleum Studies and Research Center.
    • Handle: RePEc:prc:dpaper:ks-1523-dp017a
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    References listed on IDEAS

    as
    1. Mou, Dunguo & Li, Zhi, 2012. "A spatial analysis of China's coal flow," Energy Policy, Elsevier, vol. 48(C), pages 358-368.
    2. Michael Kuby & Shi Qingqi & Thawat Watanatada & Sun Xufei & Xie Zhijun & Cao Wei & Zhang Chuntai & Zhou Dadi & Yu Xiaodong & Peter Cook & Terry Friesz & Susan Neuman & Lin Fatang & Rong Qiang & Wang X, 1995. "Planning China's Coal and Electricity Delivery System," Interfaces, INFORMS, vol. 25(1), pages 41-68, February.
    3. Haftendorn, C. & Kemfert, C. & Holz, F., 2012. "What about coal? Interactions between climate policies and the global steam coal market until 2030," Energy Policy, Elsevier, vol. 48(C), pages 274-283.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Song, Yunting & Wang, Nuo, 2019. "Exploring temporal and spatial evolution of global coal supply-demand and flow structure," Energy, Elsevier, vol. 168(C), pages 1073-1080.
    2. Wang, Wenya & Fan, L.W. & Zhou, P., 2022. "Evolution of global fossil fuel trade dependencies," Energy, Elsevier, vol. 238(PC).
    3. Bertrand Rioux, Philipp Galkin, Frederic Murphy, and Axel Pierru, 2017. "How do Price Caps in Chinas Electricity Sector Impact the Economics of Coal, Power and Wind? Potential Gains from Reforms," The Energy Journal, International Association for Energy Economics, vol. 0(KAPSARC S).
    4. Zeng, Lanyan & Liu, Shi Qiang & Kozan, Erhan & Corry, Paul & Masoud, Mahmoud, 2021. "A comprehensive interdisciplinary review of mine supply chain management," Resources Policy, Elsevier, vol. 74(C).
    5. Ge He & Li Zhou & Yiyang Dai & Yagu Dang & Xu Ji, 2020. "Coal Industrial Supply Chain Network and Associated Evaluation Models," Sustainability, MDPI, vol. 12(23), pages 1-20, November.
    6. Jorrit Gosens & Alex Turnbull & Frank Jotzo, 2021. "An installation-level model of China's coal sector shows how its decarbonization and energy security plans will reduce overseas coal imports," Papers 2112.06357, arXiv.org, revised Dec 2021.
    7. 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.
    8. Li, Zheng-Zheng & Su, Chi-Wei & Chang, Tsangyao & Lobonţ, Oana-Ramona, 2022. "Policy-driven or market-driven? Evidence from steam coal price bubbles in China," Resources Policy, Elsevier, vol. 78(C).
    9. Frederic Murphy & Axel Pierru & Yves Smeers, 2016. "A Tutorial on Building Policy Models as Mixed-Complementarity Problems," Interfaces, INFORMS, vol. 46(6), pages 465-481, December.
    10. Qian Zhang & Christopher Kennedy & Tao Wang & Wendong Wei & Jiashuo Li & Lei Shi, 2020. "Transforming the coal and steel nexus for China's eco‐civilization: Interplay between rail and energy infrastructure," Journal of Industrial Ecology, Yale University, vol. 24(6), pages 1352-1363, December.
    11. Shi, Xunpeng & Rioux, Bertrand & Galkin, Philipp, 2018. "Unintended consequences of China’s coal capacity cut policy," Energy Policy, Elsevier, vol. 113(C), pages 478-486.

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    More about this item

    Keywords

    Coal; Coal Price; Congestion Costs; Economic Modeling; Infrastructure Expansion; KAPSARC Energy Model (KEM); Transportation;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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