The Researches On China’s Coal Industry Concentration And Policy

Coal is the main energy in China and coal industry is the important foundation industry which is very important to country’s economy and energy security. But the low China’s coal concentration seriously restricts the healthy development of coal industry. Based on the analysis of China’s coal industry market concentration degree present situation and problem, to the optimization of China’s coal industry market concentration degree as the main line, from the influence factors of China’s coal industry, market concentration degree of formation and coal enterprise behavior, based on the economic efficiency of industry of our country coal concentration measurement, the upgrading of China’s coal industry concentration degree and other aspects of the policy. Its main contents include:First, the comparison between China’s coal industry concentration degree and other countries’, comparing with the United States, Russia, Australia, India finding that the coal industry concentration of the four countries have been close to or more than60%which is a typical oligopoly market structure with China’s excessive competitive market structure,. At the same time, the coal industry development situation and experience shows that the concentration of the coal industry should be kept to a reasonable level, is not the higher the better. The appropriate concentration and reasonable competition of coal industry healthy development are two important factors. However, the coal industry CR4in China in2010is only17.5%, much lower than those in the four foreign countries. The low industriy concentration ratio induces the turbid competition, so according to the foreign experience, adequate rising in Chinese coal industry concentration ratio maybe more benefit for the development of coal industry.Second, China’s coal industry concentration influence factor analysis. From the macro perspective, China’s coal industry market concentration degree influenced by historical factors, policy factors, market factors and enterprise competitiveness factors and other factors. According to these factors, this paper selects the reasonable index data, the establishment of China’s coal industry market concentration degree influence factors multivariate regression model. Model display entry barriers and the degree of industrial concentration significantly correlated; initial stage of industry concentration degree and the current industrial concentration significantly correlated; economic and technological level for industry concentration effect is very weak, and no significant; market demand and industry concentration degree positive correlation, but the correlation is not obvious. In the econometric model on the basis of the statistical analysis, this paper in the medium level analysis of China’s coal industry market concentration degree is low reason, reach low barriers to entry, high exit barriers, low level of technology, unreasonable system and policy are the formation of industry of our country coal concentration level is low the main reason. On the basis of this, the article constructs three stage dissipative game model to reveal the microscopic mechanism that coal enterprise behavior and the formation of the industrial concentration degree. This is the complementary of previous measurement model empirical analysis.Third, China’s coal industry concentration effects on coal enterprise market sales. There are multiple factors impact on China’s coal industry concentration, while the concentration of the coal industry impacts on the industry and businesses. By the industrial demand (namely industry market sales volume) as the index, this paper established a model of measurement analysis what impaction of CR4to our country coal demand. From the view of top4large enterprises the study shows the industry concentration is bigger the market demand is smaller, and vice versa. So the monopoly will actually cause industrial production declined which needs competition, requiring concentration to down. And from the small business point the greater the market concentration degree the more market sales. It will increase market sales elevated industrial concentration moderately. Therefore, there should be an appropriate coal industry market concentration making industrial demand maximum. Through empirical testing, that the coal industry of our country CR4is about48%can make the coal output reached maximum.Fourth, calculating the optimal Chinese coal industry concentration ration basing on the law of maximum profit, the researches in this chapter mainly base on one theory, namely maximum profit theory in microeconomics which states that the marginal coas equals to marginal revenue is the necessary condition of maximum profit, and two functions, namely coal industry demand function and cost function. The paper has two judge criterions about the economic efficiency, one is that the coal industry should meet the consumption demand for coal, another is the coal enterprises achieve maxium profit. Experiential researches suggest that the CR8should approach53%, so as to maxim profit.Fifth, Suggestions to promote Chinese coal industry concentration ration. Basing on the former researches and stating from some aspects that include a rational market-entry-bulwark, raising the competition power and dominator of spigot enterprise, promoting Chinese persistentable development, the paper propose some pertinent and maneuverable political advices to rise Chinese caol ondustry concentration ration to an adequate level.