Study On The Price Forming Mechanism Of Power Coal

China is a country which of large energy consumption, and coal occupies the2/3proportion in China’s primary energy consumption. and the coal which taking as mainraw material of thermal power generation has been an important part China’s power,occupy more than75%of the power share. Obviously, the coal play a decisive role inChina’s energy industry, in particular, coal as the intermediate product of coal and electricpower industry, its formation and reform of price not only influence macro economy andsocial stability of our country, but also have a profound effect on the convergence andcoordination of two industrial. In order to adapt to the process of reform and opening up,China start to open part of price of the electrical coal in1993, the mechanism of electricalcoal price changed during the time, through dual-track system, the governmentalguidance price and the market mechanism under governmental intervention and so on.But until now, China’s coal prices are still not completely formed by market forces,especially the contradiction between coal and electricity industries in last few years havebecome worse, resulting the “short of electricity” outbreak frequently. The governmenttried to use “link mechanism between the coal and electricity price” to Coordinate twoparts. To study the formation mechanism of power coal price of the coal whichconsistently accounted for nearly50%of all coal consumption will be a verymeaningful topic.Due to the complexity of macroscopic environment and the diversity of means ofbusiness objectives in microcosmic domain, there numerous factors influence theformation our country coal price. Because of my limited ability, making a comprehensiveanalysis of it is not easy and impossible. In this paper, we will try to make someexploration in some aspects of the question on the basis of the true facts, in order to haveeven the slightest discovery. Based on the existing literature classification, fully absorbthe results of their predecessors, the paper made my own comments. Then I make ahistorical review the formation of our country coal price, and analysis the factors offormation of electrical coal price, the existing problems and the reason of the rise ofrecent electrical coal price. The next part I study the formation mechanism of theelectrical coal price from the two angle of longitudinal structure change of industry chain and vertical regulation differences. Again, has carried on the empirical analysis using thetime series of China’s coal price distortion mechanism. Finally I give the Conclusion andrelevant policy recommendations in this paper.