Is the price elasticity of demand for coal in China increasing?
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We estimate the price elasticity of coal demand using provincial data for China.

Our estimations cover 1998–2012 and include a variety of controls.

Our results suggest that China's coal demand is becoming more price elastic.

As of 2012, China's coal price elasticity of demand was in the range − 0.3 to − 0.7.

Removing subsidies could help to reduce China's CO2 emissions from coal.

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