Possibilities of coal–gas substitution in East Asia: A comparison among China, Japan and South Korea
Natural gas is currently playing an increasingly significant role in low carbon development, as it provides a credible pathway to meet rising energy demand while emitting fewer greenhouse gases than from using other fossil fuels such as coal and oil. In this paper, a log linear trans-log production...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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KeAi Communications Co., Ltd.
2016-10-01
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| Series: | Natural Gas Industry B |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S235285401630078X |
| _version_ | 1797287515410923520 |
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| author | Chunping Xie Kerui Du Yingru Zhao Nigel P. Brandon |
| author_facet | Chunping Xie Kerui Du Yingru Zhao Nigel P. Brandon |
| author_sort | Chunping Xie |
| collection | DOAJ |
| description | Natural gas is currently playing an increasingly significant role in low carbon development, as it provides a credible pathway to meet rising energy demand while emitting fewer greenhouse gases than from using other fossil fuels such as coal and oil. In this paper, a log linear trans-log production function model is established to investigate inter-fuel elasticity of substitution between coal, oil, natural gas and electricity in China, Japan and South Korea, respectively. In order to overcome the problem of multicollinearity, the ridge regression approach is therefore adopted to estimate the parameters of the function. Results show elasticity estimates of both coal–gas substitution and coal–electricity substitution to be positive over 1985–2012, suggesting that these two energy input pairs are substitutes at least to some extent. It also reveals that relatively higher substitution possibilities between coal and natural gas, and less opportunities to substitute coal with other fuels in China. In addition, the model results also suggest the elasticities of coal–gas substitution in China are much larger than that in Japan and South Korea, indicating there is higher possibilities of coal–gas substitution in China. |
| first_indexed | 2024-03-07T18:34:17Z |
| format | Article |
| id | doaj.art-9869d0a8eec04cc99b8a4bb16184e6f8 |
| institution | Directory Open Access Journal |
| issn | 2352-8540 |
| language | English |
| last_indexed | 2024-03-07T18:34:17Z |
| publishDate | 2016-10-01 |
| publisher | KeAi Communications Co., Ltd. |
| record_format | Article |
| series | Natural Gas Industry B |
| spelling | doaj.art-9869d0a8eec04cc99b8a4bb16184e6f82024-03-02T05:08:25ZengKeAi Communications Co., Ltd.Natural Gas Industry B2352-85402016-10-013438739710.1016/j.ngib.2016.12.004Possibilities of coal–gas substitution in East Asia: A comparison among China, Japan and South KoreaChunping Xie0Kerui Du1Yingru Zhao2Nigel P. Brandon3European Centre for Energy and Resource Security, Department of War Studies, King's College London, UKCenter for Economic Research, Shandong University, Jinan, 250100, ChinaSchool of Energy Research, Xiamen University, Xiamen, ChinaSustainable Gas Institute, Imperial College London, London, UKNatural gas is currently playing an increasingly significant role in low carbon development, as it provides a credible pathway to meet rising energy demand while emitting fewer greenhouse gases than from using other fossil fuels such as coal and oil. In this paper, a log linear trans-log production function model is established to investigate inter-fuel elasticity of substitution between coal, oil, natural gas and electricity in China, Japan and South Korea, respectively. In order to overcome the problem of multicollinearity, the ridge regression approach is therefore adopted to estimate the parameters of the function. Results show elasticity estimates of both coal–gas substitution and coal–electricity substitution to be positive over 1985–2012, suggesting that these two energy input pairs are substitutes at least to some extent. It also reveals that relatively higher substitution possibilities between coal and natural gas, and less opportunities to substitute coal with other fuels in China. In addition, the model results also suggest the elasticities of coal–gas substitution in China are much larger than that in Japan and South Korea, indicating there is higher possibilities of coal–gas substitution in China.http://www.sciencedirect.com/science/article/pii/S235285401630078XSubstitution possibilitiesTrans-log production functionRidge regressionNatural gas |
| spellingShingle | Chunping Xie Kerui Du Yingru Zhao Nigel P. Brandon Possibilities of coal–gas substitution in East Asia: A comparison among China, Japan and South Korea Natural Gas Industry B Substitution possibilities Trans-log production function Ridge regression Natural gas |
| title | Possibilities of coal–gas substitution in East Asia: A comparison among China, Japan and South Korea |
| title_full | Possibilities of coal–gas substitution in East Asia: A comparison among China, Japan and South Korea |
| title_fullStr | Possibilities of coal–gas substitution in East Asia: A comparison among China, Japan and South Korea |
| title_full_unstemmed | Possibilities of coal–gas substitution in East Asia: A comparison among China, Japan and South Korea |
| title_short | Possibilities of coal–gas substitution in East Asia: A comparison among China, Japan and South Korea |
| title_sort | possibilities of coal gas substitution in east asia a comparison among china japan and south korea |
| topic | Substitution possibilities Trans-log production function Ridge regression Natural gas |
| url | http://www.sciencedirect.com/science/article/pii/S235285401630078X |
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