Academic Journal of Business & Management, 2024, 6(8); doi: 10.25236/AJBM.2024.060823.
Yifei Yang
Hongshen Honors School, Chongqing University, Chongqing, 401331, China
Cities are the major consumers of energy in China. China's energy consumption structure has long been characterised by a high share of coal, and nowadays the consumption and external dependence of oil and natural gas are also increasing.The current state of energy consumption generates two major problems. The first is the inadequacy of the conventional method of using only crude oil prices as a proxy variable for energy prices. Secondly, the reference of provincial composite energy price indexes to prefecture-level municipalities is also deficient. Based on these two issues, this study proposes a methodology based on the downscaling method and Divisia's composite energy price index to calculate the composite energy price index for prefecture-level cities.Applying the methodology presents a composite energy price index for eleven prefecture-level cities in Shanxi Province.This study presents a reference for the future construction of a comprehensive energy price index for each prefecture-level city in China.
Statistical downscaling method; Spearman correlation analysis; Divisia Composite Energy Price Index
Yifei Yang. Construction of a Comprehensive Energy Price Index for Prefecture-level Cities: The Case of Shanxi Province. Academic Journal of Business & Management (2024) Vol. 6, Issue 8: 157-164. https://doi.org/10.25236/AJBM.2024.060823.
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