Energy Production,Consumption, Prices and Inflation

This book examines primary energy production, consumption, and prices. It deals with the relationship between primary energy prices (international crude oil and natural gas prices) and inflation in China. The book contains abundant empirical evidence. In the long run, world crude oil consumption and prices have impacted each other and jointly driven a long-run equilibrium. Oil prices are highly elastic with respect to oil consumption but not vice versa. Coal and oil fuels in China substitute for each other equally. In the short run, natural gas prices significantly respond to CPIs in provinces and metropolises in China. CPI positively but slightly responds to gas prices. In Sichuan, international oil prices have few effects on the primary energy output and the substitution between primary energy sources given production. This book utilizes a set of sophisticated theories and methods to deal with time-series data, including cointegration, structural change, VAR and ECM models. Economists, policymakers, energy experts, college students and postgraduates may have interests to read this book.