Sensitivity Analysis of Factors Influencing Coal Prices in China

A scientific assessment of the sensitivity of the Chinese coal market has become an important research topic. This paper combines Gaussian Process Regression (GPR) and Sobol sensitivity analysis to construct a GPR–Sobol hybrid model innovatively applied to the Chinese coal market, thus addressing a gap in the economic applications of this method. The model is used to analyze the sensitivity of factors influencing coal prices in China. The GPR–Sobol model effectively handles nonlinear relationships, enabling an in-depth exploration of key factors affecting price volatility and quantifying their impacts, thus overcoming the limitations of traditional econometric models in nonlinear data processing. The results indicate that economic growth, energy prices, interest rates, exchange rates, and uncertainty factors exhibit high sensitivity and significantly impact coal price fluctuations in China. Coal prices in northwest China are more sensitive to interest rates and geopolitical risks, while prices in east and south China are more responsive to exchange rates but less so to economic policy uncertainty. Additionally, coal prices in north, south, and east China are highly sensitive to international energy prices, indicating that coal prices are dominated by the global energy market, yet their weak response to macroeconomic indicators suggests these regions is still insufficiently mature.

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Publication Details

Journal
Mathematics
Published
2024-12-21
DOI
https://doi.org/10.3390/math12244019
Citations
3
Primary Topic
Market Dynamics and Volatility
Type
article
Field-Weighted Citation Impact
3.39

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article

Sensitivity Analysis of Factors Influencing Coal Prices in China

Wenwen Zhou, Jinsuo Zhang, Jingye Lyu, Chong Li
3 citations
Mathematics
Market Dynamics and Volatility
3.39
article

Sensitivity Analysis of Factors Influencing Coal Prices in China

Wenwen Zhou, Jinsuo Zhang, Jingye Lyu, Chong Li
article en
3 citations

Abstract

A scientific assessment of the sensitivity of the Chinese coal market has become an important research topic. This paper combines Gaussian Process Regression (GPR) and Sobol sensitivity analysis to construct a GPR–Sobol hybrid model innovatively applied to the Chinese coal market, thus addressing a gap in the economic applications of this method. The model is used to analyze the sensitivity of factors influencing coal prices in China. The GPR–Sobol model effectively handles nonlinear relationships, enabling an in-depth exploration of key factors affecting price volatility and quantifying their impacts, thus overcoming the limitations of traditional econometric models in nonlinear data processing. The results indicate that economic growth, energy prices, interest rates, exchange rates, and uncertainty factors exhibit high sensitivity and significantly impact coal price fluctuations in China. Coal prices in northwest China are more sensitive to interest rates and geopolitical risks, while prices in east and south China are more responsive to exchange rates but less so to economic policy uncertainty. Additionally, coal prices in north, south, and east China are highly sensitive to international energy prices, indicating that coal prices are dominated by the global energy market, yet their weak response to macroeconomic indicators suggests these regions is still insufficiently mature.

MathematicsVol. 12(24)
Xi'an University of Science and Technology (CN), Beijing University of Technology (CN), Yan'an University (CN)
National Natural Science Foundation of China, Ministry of Education of the People's Republic of China
Openalex Percentile: Top 6%
Market Dynamics and Volatility
3.39
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