Supply shockA supply shock is an event that suddenly increases or decreases the supply of a commodity or service, or of commodities and services in general. This sudden change affects the equilibrium price of the good or service or the economy's general price level. In the short run, an economy-wide negative supply shock will shift the aggregate supply curve leftward, decreasing the output and increasing the price level. For example, the imposition of an embargo on trade in oil would cause an adverse supply shock, since oil is a key factor of production for a wide variety of goods.
Petrodollar recyclingPetrodollar recycling is the international spending or investment of a country's revenues from petroleum exports ("petrodollars"). It generally refers to the phenomenon of major petroleum-exporting states, mainly the OPEC members plus Russia and Norway, earning more money from the export of crude oil than they could efficiently invest in their own economies. The resulting global interdependencies and financial flows, from oil producers back to oil consumers, can reach a scale of hundreds of billions of US dollars per year – including a wide range of transactions in a variety of currencies, some pegged to the US dollar and some not.
CoalCoal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal is a type of fossil fuel, formed when dead plant matter decays into peat and is converted into coal by the heat and pressure of deep burial over millions of years. Vast deposits of coal originate in former wetlands called coal forests that covered much of the Earth's tropical land areas during the late Carboniferous (Pennsylvanian) and Permian times.
Coal in ChinaChina is the largest producer and consumer of coal and the largest user of coal-generated electricity in the world. The share of coal in the Chinese energy mix declined to 55% in 2021 according to the US Energy Information Agency. The Chinese central government has clamped down on the pace of new construction of coal plants and shifted to renewable, nuclear and natural gas sources. At the same time, coal consumption reached new heights in China with carbon dioxide emissions from coal-fired electricity production estimated to top 4.
Coal in AustraliaCoal is mined in every state of Australia. The largest black coal resources occur in Queensland and New South Wales. About 70% of coal mined in Australia is exported, mostly to eastern Asia, and of the balance most is used in electricity generation. In 2019-20 Australia exported 390 Mt of coal (177 Mt metallurgical coal and 213 Mt thermal coal) and was the world's largest exporter of metallurgical coal and second largest exporter of thermal coal. Coal mining in Australia has been criticized, due to carbon dioxide emissions during combustion.
Stackelberg competitionThe Stackelberg leadership model is a strategic game in economics in which the leader firm moves first and then the follower firms move sequentially (hence, it is sometimes described as the "leader-follower game"). It is named after the German economist Heinrich Freiherr von Stackelberg who published Marktform und Gleichgewicht [Market Structure and Equilibrium] in 1934, which described the model. In game theory terms, the players of this game are a leader and a follower and they compete on quantity.
Market capitalizationMarket capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by the number of common shares outstanding. Since outstanding stock is bought and sold in public markets, capitalization could be used as an indicator of public opinion of a company's net worth and is a determining factor in some forms of stock valuation.
