Abstract
Purpose and Methodology Coal has enormous importance for the Australian economy: Australia is one of the largest exporters of black coal in the world and the significant share of electricity generation in Australia is produced using brown coal. This study investigates whether shocks to Australian black and brown coal mining sector have permanent or temporary effects using Chow (1960) and Quandt–Andrews (Andrews, Econometrica 61(4):821–856, 1993; Andrews and Ploberger, Econometrica 62(6):1383–1414, 1994) tests for structural breaks and Zivot and Andrews (J Bus Econ Stat 10(3):251–270, 1992) and Clemente– Montanes–Reyes (Econ Lett 59(2):175–182, 1998) unit root tests with one and two structural breaks.
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