De-Capacity Policy Effect on China’s Coal Industry

Overcapacity in China’s coal industry has serious negative impacts on the rational allocation of coal resources and stable operation of the national economy. Since 2016, the Chinese government has implemented a series of de-capacity policies to optimise coal production capacity. Timely pol...

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Main Authors: Xuguang Hao, Mei Song, Yunan Feng, Wen Zhang
Format: Article
Language:English
Published: MDPI AG 2019-06-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/12/12/2331
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author Xuguang Hao
Mei Song
Yunan Feng
Wen Zhang
author_facet Xuguang Hao
Mei Song
Yunan Feng
Wen Zhang
author_sort Xuguang Hao
collection DOAJ
description Overcapacity in China’s coal industry has serious negative impacts on the rational allocation of coal resources and stable operation of the national economy. Since 2016, the Chinese government has implemented a series of de-capacity policies to optimise coal production capacity. Timely policy effect assessment is of great significance to the government to guide high-quality development of the coal industry. This paper first reviews the dilemma encountered by China’s coal industry prior to 2016, and then analyses the progress and effect of coal industry de-capacity. The main results are as follows: (1) The capacity reduction is mainly distributed in the central and southwestern regions. Most of the coal mines are state-owned, and there is a prominent worker resettlement problem. (2) The capacity optimisation policy has accelerated the implementation of the overall spatial planning of China’s coal supply. China’s coal production centre has shifted from the central and eastern regions to the west, and the industry’s high-quality development pattern has taken shape. (3) China’s coal industrial profitability has constantly been improving, industry concentration has increased significantly, and coal mining has become safer. (4) Due to the regional heterogeneity, the de-capacity policy effect has significant differences in coal production capacity and employee reduction in various regions. Finally, regarding the optimisation of China’s coal production capacity, some policy implications are given.
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spelling doaj.art-3c951871656d41c490ea7e0c64db94c22022-12-22T03:59:17ZengMDPI AGEnergies1996-10732019-06-011212233110.3390/en12122331en12122331De-Capacity Policy Effect on China’s Coal IndustryXuguang Hao0Mei Song1Yunan Feng2Wen Zhang3School of Management, China University of Mining &Technology (Beijing), Beijing 100083, ChinaSchool of Management, China University of Mining &Technology (Beijing), Beijing 100083, ChinaSchool of Management, China University of Mining &Technology (Beijing), Beijing 100083, ChinaSchool of Management, China University of Mining &Technology (Beijing), Beijing 100083, ChinaOvercapacity in China’s coal industry has serious negative impacts on the rational allocation of coal resources and stable operation of the national economy. Since 2016, the Chinese government has implemented a series of de-capacity policies to optimise coal production capacity. Timely policy effect assessment is of great significance to the government to guide high-quality development of the coal industry. This paper first reviews the dilemma encountered by China’s coal industry prior to 2016, and then analyses the progress and effect of coal industry de-capacity. The main results are as follows: (1) The capacity reduction is mainly distributed in the central and southwestern regions. Most of the coal mines are state-owned, and there is a prominent worker resettlement problem. (2) The capacity optimisation policy has accelerated the implementation of the overall spatial planning of China’s coal supply. China’s coal production centre has shifted from the central and eastern regions to the west, and the industry’s high-quality development pattern has taken shape. (3) China’s coal industrial profitability has constantly been improving, industry concentration has increased significantly, and coal mining has become safer. (4) Due to the regional heterogeneity, the de-capacity policy effect has significant differences in coal production capacity and employee reduction in various regions. Finally, regarding the optimisation of China’s coal production capacity, some policy implications are given.https://www.mdpi.com/1996-1073/12/12/2331coal industryovercapacityde-capacityenergy policyChina
spellingShingle Xuguang Hao
Mei Song
Yunan Feng
Wen Zhang
De-Capacity Policy Effect on China’s Coal Industry
Energies
coal industry
overcapacity
de-capacity
energy policy
China
title De-Capacity Policy Effect on China’s Coal Industry
title_full De-Capacity Policy Effect on China’s Coal Industry
title_fullStr De-Capacity Policy Effect on China’s Coal Industry
title_full_unstemmed De-Capacity Policy Effect on China’s Coal Industry
title_short De-Capacity Policy Effect on China’s Coal Industry
title_sort de capacity policy effect on china s coal industry
topic coal industry
overcapacity
de-capacity
energy policy
China
url https://www.mdpi.com/1996-1073/12/12/2331
work_keys_str_mv AT xuguanghao decapacitypolicyeffectonchinascoalindustry
AT meisong decapacitypolicyeffectonchinascoalindustry
AT yunanfeng decapacitypolicyeffectonchinascoalindustry
AT wenzhang decapacitypolicyeffectonchinascoalindustry