Macroeconomic uncertainty and natural gas prices: Revisiting the Asian Premium

Shi, X; Shen, Y

Macroeconomic uncertainty and natural gas prices: Revisiting the Asian Premium

Shi, X

Shen, Y

Permalink

Publisher:: Elsevier BV
Publication Type:: Journal Article
Citation:: Energy Economics, 2021, 94, pp. 105081-105081
Issue Date:: 2021-02-01

Open Access

Copyright Clearance Process

Recently Added
In Progress
Open Access

This item is open access.

Adobe PDF

Download Accepted ManuscriptAdobe PDF (1.29 MB)

View on publisher's site

View statistics

Full metadata record

Field	Value	Language
dc.contributor.author	Shi, X https://orcid.org/0000-0001-9653-7395
dc.contributor.author	Shen, Y
dc.date.accessioned	2021-03-02T06:38:44Z
dc.date.available	2021-03-02T06:38:44Z
dc.date.issued	2021-02-01
dc.identifier.citation	Energy Economics, 2021, 94, pp. 105081-105081
dc.identifier.issn	0140-9883
dc.identifier.uri	http://hdl.handle.net/10453/146639
dc.description.abstract	© 2021 Elsevier B.V. While macroeconomic uncertainty and its impact on commodity, mainly oil prices, have been frequently studied, there is no study investigating the role of macroeconomic uncertainty in natural gas pricing. To fill this gap, we construct homogeneous macroeconomic uncertainty measures for three major natural gas markets and investigate the dynamic causal effects of macroeconomic uncertainty shocks on the formation of natural gas prices. We show that macroeconomic uncertainty plays a vital role in determining natural gas price variations, in addition to driving business cycle fluctuations in these economies. Compared to oil price, the uncertainty impact on gas pricing is relatively moderate but significant. Market-specific supply and demand analysis shows the drivers of gas prices are substantially different in three different markets, which helps to understand the “Asian Premium” phenomenon in the natural gas trade.
dc.language	en
dc.publisher	Elsevier BV
dc.relation.ispartof	Energy Economics
dc.relation.isbasedon	10.1016/j.eneco.2020.105081
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	0906 Electrical and Electronic Engineering, 0913 Mechanical Engineering, 1402 Applied Economics
dc.subject.classification	Energy
dc.title	Macroeconomic uncertainty and natural gas prices: Revisiting the Asian Premium
dc.type	Journal Article
utslib.citation.volume	94
utslib.for	0906 Electrical and Electronic Engineering
utslib.for	0913 Mechanical Engineering
utslib.for	1402 Applied Economics
pubs.organisational-group	/University of Technology Sydney/DVC (International)
pubs.organisational-group	/University of Technology Sydney/DVC (International)/Australia-China Relations Institute
pubs.organisational-group	/University of Technology Sydney
utslib.copyright.status	open_access	*
dc.date.updated	2021-03-02T06:38:41Z
pubs.publication-status	Published
pubs.volume	94

Abstract:

© 2021 Elsevier B.V. While macroeconomic uncertainty and its impact on commodity, mainly oil prices, have been frequently studied, there is no study investigating the role of macroeconomic uncertainty in natural gas pricing. To fill this gap, we construct homogeneous macroeconomic uncertainty measures for three major natural gas markets and investigate the dynamic causal effects of macroeconomic uncertainty shocks on the formation of natural gas prices. We show that macroeconomic uncertainty plays a vital role in determining natural gas price variations, in addition to driving business cycle fluctuations in these economies. Compared to oil price, the uncertainty impact on gas pricing is relatively moderate but significant. Market-specific supply and demand analysis shows the drivers of gas prices are substantially different in three different markets, which helps to understand the “Asian Premium” phenomenon in the natural gas trade.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/146639