- freely available
Energies 2019, 12(12), 2331; https://doi.org/10.3390/en12122331
2. Literature Review
2.1. Excess Capacity and Its Causes
2.2. De-Capacity Policy and Policy Effect
2.3. Comments in the Literature and Possible Academic Contributions
3. Policy Background and De-Capacity Progress
3.1. Policy Background
3.1.1. Severe Overcapacity
3.1.2. Low Market Demand
3.1.3. More Coal Enterprises Suffered Financial Losses
3.2. De-Capacity Progress
3.2.1. Overall Goal Completion
3.2.2. Spatial Distribution of De-Capacity
3.2.3. Classification of Closed Mines
4. Policy Effect
4.1. Effect on Coal Market
4.2. Effect on Spatial Distribution of Coal Production
4.3. Effect on Coal Enterprises
4.4. Regional Differences of Policy Effect
5. Conclusions and Policy Implications
- The target of the Opinions to eliminate 500 million tons in three to five years had been achieved as of the end of 2017, with Shanxi as the province with the largest coal de-capacity during the period of 2016 to 2018. Overall, the capacity withdrawn was concentrated in the central and southwest regions, most of which belonged to state-owned coal mines and the resettlement of workers was a prominent problem. The intensity of de-capacity in most coal-producing provinces had been weakened from 2016 to 2018. At the same time, advanced production capacity was gradually released, indicating that the focus of China’s coal industry de-capacity work had gradually shifted from simple capacity cut to systematic and structural capacity optimisation.
- According to the relationship between the coal de-capacity policy and coal market, the policy effect on the market can be divided into three stages. In the policy effect-taking stage, with the implementation of the de-capacity policy, coal supply started to decline, and coal price increased as expected; In the market rebound stage, affected by the de-capacity policy, coal supply continued to decline and coal price rose across the board. Later, with the release of high-quality production capacity to a certain extent, coal prices fell then stabilised. In the market adjustment stage, the de-capacity work was transformed into systematic and structural de-capacity, which promoted the stability of the coal market and the fluctuation of coal prices within the normal range.
- There is ‘less production capacity reduction and more increase’ in western China and ‘more capacity reduction and less increase’ in central and eastern China. The centre of China’s coal production has shifted from the central and eastern regions to the west, the high-quality industrial development pattern of ‘structural de-capacity and systemic capacity optimisation’ was initially formed.
- With the development of de-capacity work and the rational return of coal prices, the profitability of coal enterprises has been enhanced significantly, while the pace of mergers and acquisitions has improved the industrial concentration. At the same time, the international competitiveness of China’s coal enterprises has been significantly enhanced, and the level of safety production has continued to improve.
- Due to regional heterogeneity, including resource reserves, the contribution of the coal industry to local GDP and policy compliance, there were obvious differences in various regions. Regional heterogeneity was likely to cause local governments and coal enterprises to respond differently to the de-capacity policy issued by the Central Government of China, resulting in varied regional coal production capacity and employee reductions.
5.2. Policy Implications
Conflicts of Interest
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|Loss-Making Enterprises||Loss Rate|
(hundred million yuan)
|Actual completion||2.9||2.5||0.8 *||6.2|
|Mine Property||Mine Scale||Quantity Proportion (%)||Capacity Proportion (%)|
|State-owned||Large and medium||13||36|
|Small-scale (< 300 kt)||60||45|
|1||Shenhua Group||43,149||Shenhua Group||44,072||China Energy Group||51,200|
|2||China Coal Group||13,323||China Coal Group||16,368||China Coal Group||19,000|
|3||Shandong Energy Group||13,050||Shandong Energy Group||14,139||YANKUANG Group||16,100|
|4||Shaanxi Coal Chemical Industry Group||12,593||Shaanxi Coal Chemical Industry Group||14,010||Shaanxi Coal Chemical Industry Group||16,000|
|5||Datong Coal Mine Group||11,786||YANKUANG Group||13,511||Shandong Energy Group||14,500|
|6||YANKUANG Group||11,415||Datong Coal Mine Group||12,700||Datong Coal Mine Group||13,700|
|7||Shanxi Coking Coal Group||9151||Shanxi Coking Coal Group||9609||Shanxi Coking Coal Group||10,000|
|8||Jizhong Energy Group||8009||Yangquan Coal Industry Group||8200||Shanxi Jinneng Group||8081|
|China’s coal output||336,398||China’s coal output||344,500||China’s coal output||354,610|
|Region||Contribution to Local GDP (%)||Production|
|Production Reduction Rate (%)||Employees Reduction|
|Employees Reduction Rate (%)|
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