Based On The Theory Of Industrial Organization Of China’s Coal Industry Competitiveness Evaluation

The coal resource of China has obvious advantage compared with the worlds’with its unique resource endowment. Energy is the lifeblood of the national economicdevelopment. For a long time, the proportion of coal in a one-off energy productionand consumption in China has accounted for more than60%. Coal is the mainposition in the energy structure of China. However, we have to optimize the structureof the coal industry because of new forms from national and international, such asglobal response to climate change, the development of low carbon economy under theinternational and the domestic transformation of the pattern of economic development.The domestic coal market has shown oversupply since2009. How to increase thecompetitiveness of coal industry becomes an urgent problem to China.This paper bases on theory frameworks of industrial economics and regionaleconomics and uses methods of econometrics and statistics to analyze data. Weprovide an evaluation system of industrial organization that is aware of the strength ofthe coal industrial competitiveness in summary of previous studies. Our work isdivided into three parts. Firstly, we research the characteristics of the coal industry atpresent stage from industry life cycle perspective. Secondly, we build the coalindustrial competitiveness evaluation system following those characteristics. We useprincipal component analysis (PCA) approach to research provincial coal industrysystematic in order to analyze the industry competitiveness of those provinces. Thenwe put forward countermeasures to promote the competitiveness of the industryaccording to the good potential of the provinces. Finally, we discuss the competitivepower of China after entering market.Our research findings suggest that we can upgrade China’s coal industrycompetitiveness from three levels. The government needs to arrange macroeconomicregulations and controls at national level and moves the inner of the coal industry toMongolia, Shanxi, Shaanxi and Xinxiang where is low costs and adequate reserves.At provincial level, more competitive provinces should increase investment and enhance the level of technology to consolidate the coal industrial competitiveness.The middle competitive provinces should strengthen barriers to entry, increaseinvestment and form economies of scale to enhance competitiveness. Weakcompetitive provinces should carry out industry transformation and develop theupstream and downstream industries of coal industry. Enterprise level should payattention to the distribution of business, to strengthen internal management,diversified development, implement the strategy of "going out".