Energy Working Group: Modeling the World Steam Coal Market: To What Extent Does China Exercise Monopsony Power?

Seminar

Speaker(s)

Date and Time

February 16, 2011 12:00 PM - 1:15 PM

Availability

By Invitation Only.

Location

Encina Hall Stanford University

FSI Contact

This EWG talk will highlight PESD's first analysis using our new coal model by demonstrating how it can be used to analyze the effects of China's import behavior on world thermal coal consumption. We will explore China's capability as a consumer to exercise market power in the domestic Chinese markets, and to what extent this behavior affects the price, consumption, and production of steam coal globally. Two scenarios will be presented: 1) we assume Chinese consumers with import capability behave competitively and 2) we assume they exercise market power.

The use of coal as a fuel has increased tremendously over the past decade, with most of the growth coming from rapidly expanding economies like those in China and India. As coal continues to be the fuel of choice for electricity generation around the world, PESD is excited to be developing a model to further understand the global steam coal market.  In the future, we anticipate the model will help answer questions regarding climate and trade policies, market structure, and technology improvements.

Michael Joined PESD in July of 2010 as a research assistant after graduating from Stanford University with a BA in Economics.

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