Evaluation of risk strategy and market efficiency in the international coal market: A case study of the Japanese coking coal market.

Persistent Link:
http://hdl.handle.net/10150/185951
Title:
Evaluation of risk strategy and market efficiency in the international coal market: A case study of the Japanese coking coal market.
Author:
Wang, Tianchi.
Issue Date:
1992
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
Market efficiency and buyers' risk strategy in the Japanese coking coal import market are examined. The Japanese coal market is found to be inefficient, Japanese buyers traditionally have purchased coals from the United States at a high price and, since the second half of the 1980's, have paid the highest average price to Canadian producers. Given the abundant low cost Australian coals, this purchasing pattern does not meet the cost minimization criteria for efficiency. This is explained mainly by the buyers' risk management strategy. To more accurately examine price differentiation, the complexity of coal quality is considered first. A statistical method is used to estimate the quality premium as a cost component in price formation. Next a comparison of supply regions and a detailed investigation on market conduct is based on quality-adjusted prices, which are assumed to represent the prices of homogenous coals. Although various reasons are used by researchers to explain Japanese buyers power, this study finds vertical integration of the Japanese companies to be the most important factor creating that power. A detailed survey of vertical integration is made. Finally, a monetary value of the risk premium is estimated by using the partial elasticity of substitution. Total payments by Japanese coking coal buyers for risk premiums are estimated. These represent the extra dollars paid by the Japanese to US and Canadian coal producers for purchasing their coals instead of Australian coals.
Type:
text; Dissertation-Reproduction (electronic)
Keywords:
Coal trade -- Japan -- Evaluation.; Coal mines and mining -- Japan.
Degree Name:
Ph.D.
Degree Level:
doctoral
Degree Program:
Mining and Geological Engineering; Graduate College
Degree Grantor:
University of Arizona
Committee Chair:
Harris, DeVerle P.

Full metadata record

DC FieldValue Language
dc.language.isoenen_US
dc.titleEvaluation of risk strategy and market efficiency in the international coal market: A case study of the Japanese coking coal market.en_US
dc.creatorWang, Tianchi.en_US
dc.contributor.authorWang, Tianchi.en_US
dc.date.issued1992en_US
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractMarket efficiency and buyers' risk strategy in the Japanese coking coal import market are examined. The Japanese coal market is found to be inefficient, Japanese buyers traditionally have purchased coals from the United States at a high price and, since the second half of the 1980's, have paid the highest average price to Canadian producers. Given the abundant low cost Australian coals, this purchasing pattern does not meet the cost minimization criteria for efficiency. This is explained mainly by the buyers' risk management strategy. To more accurately examine price differentiation, the complexity of coal quality is considered first. A statistical method is used to estimate the quality premium as a cost component in price formation. Next a comparison of supply regions and a detailed investigation on market conduct is based on quality-adjusted prices, which are assumed to represent the prices of homogenous coals. Although various reasons are used by researchers to explain Japanese buyers power, this study finds vertical integration of the Japanese companies to be the most important factor creating that power. A detailed survey of vertical integration is made. Finally, a monetary value of the risk premium is estimated by using the partial elasticity of substitution. Total payments by Japanese coking coal buyers for risk premiums are estimated. These represent the extra dollars paid by the Japanese to US and Canadian coal producers for purchasing their coals instead of Australian coals.en_US
dc.typetexten_US
dc.typeDissertation-Reproduction (electronic)en_US
dc.subjectCoal trade -- Japan -- Evaluation.en_US
dc.subjectCoal mines and mining -- Japan.en_US
thesis.degree.namePh.D.en_US
thesis.degree.leveldoctoralen_US
thesis.degree.disciplineMining and Geological Engineeringen_US
thesis.degree.disciplineGraduate Collegeen_US
thesis.degree.grantorUniversity of Arizonaen_US
dc.contributor.chairHarris, DeVerle P.en_US
dc.contributor.committeememberRieber, Michaelen_US
dc.contributor.committeememberNewcomb, Richarden_US
dc.contributor.committeememberTaylor, Lesteren_US
dc.identifier.proquest9303294en_US
dc.identifier.oclc703155418en_US
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