Oil price shocks and their short- and long-term effects on the Chinese economy

A considerable body of economic literature shows the adverse economic impacts of oil-price shocks for the developed economies. However, there has been a lack of empirical study of this kind on China and other developing countries. This paper attempts to fill this gap by answering how and to what extent oil-price shocks impact China’s economy, emphasizing on the price transmission mechanisms. To that end, we develop a structural vector auto-regressive model. Our results show that an oil-price increase negatively affects output and investment, but positively affects inflation rate and interest rate. However, with the differentiated price control policies for materials and intermediates on the one hand and final products on the other hand in China, the impact on real economy, represented by real output and real investment, lasts much longer than that to price/monetary variables. Our decomposition results also show that the short-term impact, namely output decrease induced by the cut of capacity-utilization rate, is greater in the first one to two years, but the portion of the long-term impact, defined as the impact realized through an investment change, increases steadily and exceeds that of short-term impact at the end of the second year. Afterwards, the long-term impact dominates, and maintains for quite some time.Structural vector auto-regressive model; Unit root test; Error-correction model; Oil-price shocks; Price transmission mechanisms; Investment; Output; Producer/consumer price index; Census X-12 approach; China

Inflationary Effect of Oil-Price Shocks in an Imperfect Market: A Partial Transmission Input-output Analysis

This paper aims to examine the impacts of oil-price shocks on China’s price levels. To that end, we develop a partial transmission input-output model that captures the uniqueness of the Chinese market. We hypothesize and simulate price control, market factors and technology substitution - the three main factors that restrict the functioning of a price pass-through mechanism during oil-price shocks. Using the models of both China and the U.S., we separate the impact of price control from those of other factors leading to China’s price stickiness under oil-price shocks. The results show a sharp contrast between China and the U.S., with price control in China significantly preventing oil-price shocks from spreading into its domestic inflation, especially in the short term. However, in order to strengthen the economy’s resilience to oil-price shocks, the paper suggests a gradual relaxing of price control in China.Oil-price Shocks, Price Transmission, Price Control, Input-output Analysis, Inflation, Industrial Structure, China, the United States

Chemically Ordered Pt–Co–Cu/C as Excellent Electrochemical Catalyst for Oxygen Reduction Reaction

This paper reveals the ordered structure and composition effect to electrochemical catalytic activity towards oxygen reduction reaction (ORR) of ternary metallic Pt–Co–Cu/C catalysts. Bimetallic Pt-Co alloy nanoparticles (NPs) represent an emerging class of electrocatalysts for ORR, but practical applications, e.g. in fuel cells, have been hindered by low catalytic performances owning to crystal phase and atomic composition. Cu is introduced into Pt-Co/C lattices to form PtCoxCu1−x/C (x = 0.25, 0.5 and 0.75) ternary-face-centered tetragonal (fct) ordered ternary metallic NPs. The chemically ordered Pt–Co–Cu/C catalysts exhibit excellent performance of 1.31 A mg−1 Pt in mass activity and 0.59 A cm−2 Pt in specific activity which are significantly higher than Pt-Co/C and commercial Johnson Matthey (JM) Pt/C catalysts, because of the ordered crystal phase and composition control modified the Pt-Pt atoms distance and the surface electronic properties. The presence of Cu improves the surface electronic structure, as well as enhances the stability of catalysts