Cost Pass-Through in Commodity Markets With Capacity Constraints and International Linkages

verfasst von

Reinhard Ellwanger, Hinnerk Gnutzmann, Piotr Śpiewanowski

Abstract

We examine how regional cost shocks are passed through into the prices of globally traded energy-intensive commodities. We find that the pass-through of local costs is influenced by production capacity in the short run. When capacity constraints become binding, the pass-through of cost shocks to the constrained region diminishes to zero. Our application to the market for ammonia, a commodity largely produced from natural gas, demonstrates the significance of capacity constraints and international market linkages for empirical pass-through models.

Organisationseinheit(en)

Institut für Makroökonomik

Externe Organisation(en)

Bank of Canada
Instytut Chemii Bioorganicznej Polskiej Akademii Nauk

Typ

Artikel

Journal

Journal of applied econometrics

Band

40

Seiten

149-163

Anzahl der Seiten

15

ISSN

0883-7252

Publikationsdatum

04.03.2025

Publikationsstatus

Veröffentlicht

Peer-reviewed

Ja

ASJC Scopus Sachgebiete

Sozialwissenschaften (sonstige), Volkswirtschaftslehre und Ökonometrie

Elektronische Version(en)

https://doi.org/10.1002/jae.3098 (Zugang: Geschlossen)