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China’s Wintry Energy Mix, Part 1: Coal and Environmental Controls

China’s energy consumption patterns have changed recently, as natural gas demand soared in late 2017, primarily because of restrictions on coal use during the winter. Authorities want to stabilize upstream coal prices and supply volatility to avoid future downstream disruptions, but environmental enforcement also remains a key policy priority.  Temporary bans on coal usage may keep coal prices volatile, against a macroeconomic backdrop of weaker inflationary pressure and slowing credit and activity growth.

Posted February 16, 2018
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