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.