Abstract
As the economic growth and industrialization, China’s demand for oil rapidly increased. The oil supply security is becoming a key consideration for China’s policy-makers. In this paper, an empirical analysis on optimal operating strategies of China’s public and private oil stockpiles in different market states, including normal oil supply and oil supply interruption, was made by developing a simple dynamic game model. Optimal operating strategies and inventory levels for public and private oil stockpile were derived. Influences on oil prices by stockpiles’ behaviours were derived. The construction processes of the public oil stockpiles were also taken into account.
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Acknowledgments
The authors gratefully acknowledge the financial support from the National Natural Science Foundation of China (Nos. 71521002, 71401010) and the China Postdoctoral Science Foundation (No. 2014M550024).
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Li, H., Chen, X. Dynamic game analysis on China’s public and private oil stockpiles. Nat Hazards 84, 715–723 (2016). https://doi.org/10.1007/s11069-016-2405-y
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DOI: https://doi.org/10.1007/s11069-016-2405-y