Estimating the Efficiency and Impacts of Petroleum Product Pricing Reforms in China
Abstract
:1. Introduction
2. Literature Review
3. The Influences of Petroleum Products Price Fluctuation
3.1. The History of Domestic and Foreign Petroleum Products Pricing Mechanism
3.2. The Relationship between Domestic Petroleum Products Prices and International Oil Prices
3.3. The Influences of the Pricing Mechanism
4. The Frequency and Amplitude of Petroleum Products Prices Adjustment
4.1. The Price Adjustment under the Petroleum Products Pricing Mechanism
4.1.1. The Frequency of Petroleum Products Prices Adjustments
4.1.2. The Amplitude of Price Adjustments
4.2. The Price Adjustments of Petroleum Products without Government Intervention
5. The Impacts of Petroleum Products Price Adjustments on Inflation
5.1. The Augmented Phillips Curve Model
5.2. The Empirical Results
5.2.1. Data Resource
5.2.2. The Results of the Model
6. Conclusions and Suggestions
6.1. Conclusions
6.2. Policy Implications
Acknowledgments
Author Contributions
Conflicts of Interest
References
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Time | Pricing Mechanism | Illustration |
---|---|---|
Before 1982 | Planned price stage | The price is formulated, adjusted, and strictly implemented by the government. |
1982–1994 | Two track stage | Many kinds of price forms, such as flat price, high price in plan, high price out of plan, and so on. |
1994–1998 | Single price stage | Unified implementation of national pricing. |
1998.6–2001.11 | Linked to the Singapore market stage | Adjust the price of gasoline and diesel oil if it has been fluctuated more than 5% of the Singapore market. |
2001.11–2006.3 | Multi market linkage stage | Weighted average value of Singapore, Rotterdam and New York market prices (6:3:1). |
2008.12.18 | Fuel consumption tax stage | Oil price included fuel consumption tax. |
2009.5.7 | 22 weekdays + 4% | Adjust the oil price if the moving average price of crude oil in the international market has changed more than 4% for 22 consecutive weekdays. |
2013.3 | 10 weekdays | Adjust the price every 10 weekdays, and cancel the fluctuation range of 4%. |
Countries | Time | Pricing Policy | Illustration |
---|---|---|---|
US | Before 1973 | Liberal oil pricing policy. | None restriction. |
1973–1981 | Emergency oil distribution act. | The first oil crisis broke out, and the United States government set up a pricing system to control the oil price. | |
After 1981 | Liberal oil pricing policy. | None restriction. | |
Japan | 1952–1962 | Restricting oil consumption and considering adjust the dominant energy. | Considering the adjustment of energy strategy. |
1962–1972 | Liberalization of oil trade. | Determining oil as the dominant source of energy. | |
1973–1985 | Formulating a safety system for oil supply. | Controlling oil consumption and formulating the policy of protecting supply and reducing consumption. | |
1986–1995 | Mitigating the control of oil production. | Import liberalization of heavy oil. | |
1996–2002 | Mitigating the control of oil circulation. | Releasing the oil export restrictions. | |
After 2003 | Expanding the ownership of external oil. | To improve energy security. | |
South Korea | Before 1994 | Administrative pricing policy. | The government implemented the oil pricing policy. |
1994 | Linked with international crude oil price. | Oil prices are adjusted on the basis of last month’s import of crude oil. | |
1995 | Linked with international price of refined oil. | Domestic oil price was dependent on international refined oil price. | |
1996 | The registration management system of the gas station and the examination system of the importer’s qualification. | Controlling oil consumption. | |
After 1997 | Liberal oil policy. | None restriction. |
Variable | Before a | After b | ||
---|---|---|---|---|
Standard Statistics | First Order Difference Statistics | Standard Statistics | First Order Difference Statistics | |
−2.630 * | −5.184 *** c | −2.267 | −4.862 *** | |
−2.300 | −4.777 *** | −2.386 | −4.792 *** | |
−2.679 * | −3.668 *** | −1.815 | −5.904 *** |
Variable | Before the Implementation | After the Implementation | ||
---|---|---|---|---|
Gasoline | Diesel | Gasoline | Diesel | |
C | 7.928 (20.754) | - | 7.296 (80.176) | - |
0.219 (2.406) | - | 0.405 (20.250) | - |
Time | Change Rate of International Crude Oil Price a | Gasoline | Diesel | ||
---|---|---|---|---|---|
Rate of Change | Rate of Change | ||||
2009-6-1 | 0.257 | 0.070 | 0.272 | 0.080 | 0.312 |
2009-6-30 | 0.180 | 0.098 | 0.544 | 0.111 | 0.618 |
2009-7-29 | −0.058 | −0.033 | 0.568 | −0.037 | 0.638 |
2009-9-2 | 0.113 | 0.046 | 0.408 | 0.052 | 0.461 |
2009-9-30 | −0.056 | −0.028 | 0.502 | −0.031 | 0.563 |
2009-11-9 | 0.120 | 0.073 | 0.604 | 0.082 | 0.680 |
2010-4-14 | 0.063 | 0.045 | 0.711 | 0.050 | 0.793 |
2010-6-1 | −0.054 | −0.031 | 0.578 | −0.033 | 0.615 |
2010-10-26 | 0.067 | 0.032 | 0.479 | 0.034 | 0.510 |
2010-12-22 | 0.091 | 0.042 | 0.457 | 0.045 | 0.491 |
2011-2-19 | 0.115 | 0.045 | 0.393 | 0.050 | 0.435 |
2011-4-7 | 0.153 | 0.062 | 0.404 | 0.055 | 0.356 |
2011-10-9 | −0.052 | −0.035 | 0.672 | −0.039 | 0.746 |
2012-2-8 | 0.051 | 0.036 | 0.708 | 0.040 | 0.789 |
2012-3-20 | 0.102 | 0.070 | 0.683 | 0.078 | 0.758 |
2012-5-10 | −0.051 | −0.036 | 0.703 | −0.037 | 0.727 |
2012-6-9 | −0.093 | −0.060 | 0.645 | −0.064 | 0.685 |
2012-7-11 | −0.091 | −0.050 | 0.555 | −0.053 | 0.585 |
2012-8-10 | 0.085 | 0.049 | 0.579 | 0.052 | 0.610 |
2012-9-11 | 0.072 | 0.066 | 0.923 | 0.072 | 1.004 |
2012-11-16 | −0.047 | −0.035 | 0.754 | −0.037 | 0.804 |
2013-2-25 | 0.056 | 0.035 | 0.630 | 0.038 | 0.673 |
2013-3-27 | −0.072 | −0.035 | 0.491 | −0.037 | 0.524 |
2013-4-25 | −0.075 | −0.046 | 0.618 | −0.052 | 0.691 |
2013-5-10 | 0.025 | 0.012 | 0.460 | 0.013 | 0.511 |
2013-6-7 | −0.009 | −0.012 | 1.335 | −0.012 | 1.404 |
2013-6-22 | 0.016 | 0.012 | 0.752 | 0.013 | 0.794 |
Time | Gasoline | Diesel | Time | Gasoline | Diesel |
---|---|---|---|---|---|
2009-6-1 | 6447 | 5615 | 2011-5-27 | 11,818 | 10,292 |
2009-7-1 | 7535 | 6562 | 2011-8-25 | 11,288 | 9830 |
2009-7-31 | 7077 | 6163 | 2011-10-18 | 10,825 | 9427 |
2009-8-28 | 7915 | 6893 | 2011-11-17 | 11,281 | 9824 |
2009-9-30 | 7430 | 6471 | 2012-2-13 | 11,738 | 10,222 |
2009-10-30 | 8010 | 6976 | 2012-3-14 | 12,743 | 11,097 |
2009-12-1 | 8485 | 7390 | 2012-5-4 | 12,229 | 10,650 |
2010-2-15 | 8088 | 7043 | 2012-6-5 | 11,149 | 9709 |
2010-3-17 | 8528 | 7427 | 2012-7-5 | 10,046 | 8749 |
2010-4-19 | 8994 | 7832 | 2012-8-6 | 10,661 | 9285 |
2010-5-25 | 8576 | 7468 | 2012-9-5 | 11,587 | 10,090 |
2010-6-24 | 8103 | 7057 | 2013-2-15 | 12,054 | 10,497 |
2010-10-6 | 8492 | 7396 | 2013-3-20 | 11,568 | 10,074 |
2010-11-5 | 8907 | 7757 | 2013-4-10 | 10,851 | 9450 |
2010-12-17 | 9288 | 8089 | 2013-4-24 | 9885 | 8609 |
2011-1-20 | 9952 | 8667 | 2013-5-8 | 9401 | 8187 |
2011-2-21 | 10,436 | 9088 | 2013-5-22 | 9561 | 8326 |
2011-3-23 | 11,681 | 10,172 | 2013-6-5 | 9499 | 8273 |
2011-4-21 | 12,360 | 10,764 | 2013-6-19 | 9567 | 8331 |
Number of Cointegrating Equation | Trace Statistic | 5% Critical Value | Max-Eigen Statistic | 5% Critical Value |
---|---|---|---|---|
None | 23.582 | 29.797 | 18.557 | 21.132 |
At most 1 | 5.026 | 15.495 | 4.275 | 14.265 |
At most 2 | 0.750 | 3.841 | 0.750 | 3.841 |
Variables | Coefficient |
---|---|
C | 0.045 (0.279) |
0.993 (21.784) | |
(−1) | 0.018 (1.257) |
−0.026 (−0.918) | |
0.026 (0.717) | |
−0.001 (−1.380) |
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Deng, C.; Jiang, Z.; Sun, C. Estimating the Efficiency and Impacts of Petroleum Product Pricing Reforms in China. Sustainability 2018, 10, 1080. https://doi.org/10.3390/su10041080
Deng C, Jiang Z, Sun C. Estimating the Efficiency and Impacts of Petroleum Product Pricing Reforms in China. Sustainability. 2018; 10(4):1080. https://doi.org/10.3390/su10041080
Chicago/Turabian StyleDeng, Chuxiong, Zhujun Jiang, and Chuanwang Sun. 2018. "Estimating the Efficiency and Impacts of Petroleum Product Pricing Reforms in China" Sustainability 10, no. 4: 1080. https://doi.org/10.3390/su10041080