Cai, Y.Wu, Y.2025-12-182025-12-182021Australasian Journal of Environmental Management, 2021; 28(4):373-3901448-65632159-5356https://hdl.handle.net/11541.2/40253This article aims to understand the gas-pricing mechanisms in the world's major markets and hence draw implications for gas-pricing reform in Asia. It adopts a newly proposed time-varying Granger causality test to investigate the connection between crude oil and natural gas prices. The empirical results suggest the necessity to establish gas trading hubs and hence adopt hub-based pricing in Asia and Europe so that gas pricing can fully reflect the fundamentals in gas markets and help achieve more efficient gas allocation. The resultant growth in gas consumption and potential replacement of dirtier fuels such as coal and oil is important for emission reduction and hence climate change action in the world, particularly in Asia, the world's most dynamic region.enCopyright 2021 Environment Institute of Australia and New Zealandnatural gas pricingoil indexationtime-varying granger causality testrolling window techniqueasiaJournal article10.1080/14486563.2021.19791112-s2.0-85116133944