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Article: Energy Prices, Real Estate Sales and Industrial Output in China

TitleEnergy Prices, Real Estate Sales and Industrial Output in China
Authors
Issue Date2018
PublisherMDPI AG. The Journal's web site is located at http://www.mdpi.com/journal/Energies
Citation
Energies, 2018, v. 11, p. 1847 How to Cite?
AbstractA majority of energy is consumed to control the indoor environment for human activities and industrial production. The demand for energies for these two uses are reflected in demand for different types of real estate and the volume of industrial outputs. The purpose of this study is to examine the long-run equilibrium and short-run dynamics between real energy prices and demand for different types of real estate and industrial output in China. Energy prices are measured in the real price of fuels and power. Demand for different types of real estate is measured in their sales volume in the first hand market, that is, floor areas of new real estate sold by developers. Industrial output is measured by the net output (value added) of the industrial sector. All data series were tested for stationarity (i.e., the existence of a unit root) before testing for a co-integration relationship. We found no long-term equilibrium relationship between energy prices and the demand for real estate and industrial output as predicted by theory, probably due to increased supply of energy efficient buildings. There is also no short-run relationship between energy prices and demand for housing due to the increase in vacancy rate resulting from speculative demand for housing. However, demand for commercial properties appeared to lead energy prices. Finally, there is strong evidence suggesting that an increase in energy prices will significantly reduce industrial output but not vice versa.
Persistent Identifierhttp://hdl.handle.net/10722/263399
ISSN
2018 Impact Factor: 2.707
2015 SCImago Journal Rankings: 0.840
ISI Accession Number ID

 

DC FieldValueLanguage
dc.contributor.authorChau, KW-
dc.contributor.authorZou, G-
dc.date.accessioned2018-10-22T07:38:17Z-
dc.date.available2018-10-22T07:38:17Z-
dc.date.issued2018-
dc.identifier.citationEnergies, 2018, v. 11, p. 1847-
dc.identifier.issn1996-1073-
dc.identifier.urihttp://hdl.handle.net/10722/263399-
dc.description.abstractA majority of energy is consumed to control the indoor environment for human activities and industrial production. The demand for energies for these two uses are reflected in demand for different types of real estate and the volume of industrial outputs. The purpose of this study is to examine the long-run equilibrium and short-run dynamics between real energy prices and demand for different types of real estate and industrial output in China. Energy prices are measured in the real price of fuels and power. Demand for different types of real estate is measured in their sales volume in the first hand market, that is, floor areas of new real estate sold by developers. Industrial output is measured by the net output (value added) of the industrial sector. All data series were tested for stationarity (i.e., the existence of a unit root) before testing for a co-integration relationship. We found no long-term equilibrium relationship between energy prices and the demand for real estate and industrial output as predicted by theory, probably due to increased supply of energy efficient buildings. There is also no short-run relationship between energy prices and demand for housing due to the increase in vacancy rate resulting from speculative demand for housing. However, demand for commercial properties appeared to lead energy prices. Finally, there is strong evidence suggesting that an increase in energy prices will significantly reduce industrial output but not vice versa.-
dc.languageeng-
dc.publisherMDPI AG. The Journal's web site is located at http://www.mdpi.com/journal/Energies-
dc.relation.ispartofEnergies-
dc.rightsThis work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.-
dc.titleEnergy Prices, Real Estate Sales and Industrial Output in China-
dc.typeArticle-
dc.identifier.emailChau, KW: hrrbckw@hku.hk-
dc.identifier.authorityChau, KW=rp00993-
dc.description.naturepublished_or_final_version-
dc.identifier.doi10.3390/en11071847-
dc.identifier.scopuseid_2-s2.0-85051179316-
dc.identifier.hkuros295471-
dc.identifier.volume11-
dc.identifier.spage1847-
dc.identifier.epage1847-
dc.identifier.isiWOS:000441830500231-
dc.publisher.placeSwitzerland-

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