Research The Integration Of China's Coal Industry Based On The Theory Of Industrial Organization

Since the reform and opening, China's coal industry has made considerable progress. But for a long time the organizational structure is irrational, the mode of growth is extensive, the security accident is excessive, the waste of resources is serious, environmental governance is lag. In recent years the government issues a series of policies to adjust the industrial structure, standardize enterprise behavior. The large-scale coal enterprises merge. The small coal mines mergers merge, or even shut down. The government encourages the development of recycling economy. Strong implements the safety management. So the structure of China's coal industry, and competitive actions have occurred significant changes. Therefore, this article analysis the development and changes and explores the road to healthily develop through the industrial organization theory: The structure-conduct-performance analysis paradigm of Harvard School and the efficiency theory of the Chicago School, combined with the actual situation of China's coal industry. Through research, this paper obtains the following conclusions:Firstly, about market structure aspect, (1) the market concentration of China's coal industry has been greatly improved, but the absolute concentration is still low; the market structure is still in the competition-based market structure, rather than the oligopoly market structure. (2) The barriers to entry is low, exit barriers is high in the coal industry. (3) The proportion of the large-scale coal mine production has been significantly improved accounts for the total coal output; the small scale coal mine is gradually decreased.Secondly, about competitive behavior aspect, (1) through nearly three decades of market-oriented reforms, the price is basically decided by market, the business is the taker of the market price based on competition market.(2) In order to meet the green requirements of economic development, in recent years the cycle of economic model has been widely developed in China's coal industry,(3) the government regulation behavior, particularly mergers and acquisitions policy, plays a pivotal role in order to promote the sustainable, healthy development.Thirdly, about the market performance aspect (1) since the 1990s the overall economic performance, safety performance has significantly improved in China's coal industry. But the safety performance has still gaps comparing with the major foreign coal producing countries. (2) China has always attaches importance of green development, the coal industry's environmental performance has been some improvement, but the future situation is still grim.Fourthly, through the empirical analysis of industrial organization theory, the performance of China's coal business is built on business efficiency and has nothing with market structure and market forces because of the market. Finally, according to the Harvard School, Chicago School, and the actual situation of China's coal industry, the article proposes to promote the healthy development including the industrial optimization goals, approaches, and its main optimization measures.