Research On The Optimization Of Coal Industrial Organization In China

In China, coal industry is a basic industry which supplies main energy for the rapid development of economy. After 60 years of construction and development, China has become the major coal producing country in the world. The mining, production and management of coal industry have greatly improved. However, coal industry of China has many problems, including the low market concentration, scale economic and profit of coal industry, high barriers to entry and exit, weak technology innovation ability, serious waste of resource and environmental pollution. Industrial organization theory and Effective competition theory show that effective competition is a situation which can both keep competition and realize scale economy. In order to solve these problems in coal industry in China and make it state effective competition, we must optimize the coal industry.First of all, according to the data from 2000 to 2011, the paper analyzes the present situation of coal industrial organization of China. Then, the paper evaluates effective competition situation and analyzes the main problems of China’s coal industry in three aspects including market structure, enterprise behavior and market performance by using the principal component analysis.Finally, the paper concludes that: In the aspect of market structure, market concentration of Chinese coal industry is not high, the market share size of the township coal is still large, the entry and exit barriers are high and scale effect of coal enterprise is weak. In the aspect of enterprise behavior, price control of coal industry is not obvious and science and technology innovation level of coal industry has improved although it is still low. In the aspect of market performance, economic performance of overall the coal industry is in good condition, yet its resource waste is serious, coal industry technological level is not high, safety accidents still happen and the environmental performance is not significantly improved. So, we should perfect the market system of coal industry, accelerate the establishment of the coal industry policies and regulations, regulate macroeconomic regulation and control, promote coal industry technology innovation, strengthen the construction of self-organization of large-scale coal enterprise, speed up the merger and reorganization, build large coal enterprise groups and so on. These policy measures are important ways to promote the effective competition of coal industry in china.