Study On The Causes And Countermeasures Of Coal Overcapacity In Shanxi Province

Coal resources is the main energy consumption in China,the coal industry is the leading industry in Shanxi Province.In recent years,with the coal overcapacity problem continues to intensify,the coal enterprises of Shanxi province are facing the problem of operating difficulties and Serious loss,the GDP growth of Shanxi Province is the worst in China.As a large province with plenty of coal resource,Coal overcapacity has become the biggest obstacle to economic development in Shanxi Province.For the coal overcapacity in Shanxi Province,this paper mainly solves three problems: the status of Shanxi coal overcapacity,the reason of coal overcapacity,how to solve the coal overcapacity.Firstly,this paper rely on the method which uses the output sequence to deduce the production boundary to estimate the capacity utilization level of Shanxi coal industry from 1990 to 2015.The results show that the utilization rate of coal production capacity in Shanxi Province shows the fluctuation trend of the upper and lower cycles and Shanxi coal industry entering a new round of overcapacity after 2011.Secondly,this paper uses the theory of macroeconomic fluctuations,industrial transformation and upgrading,government intervention and property rights to explain the reason of overcapacity.The main conclusion: the lack of demand caused by macroeconomic downturn,economic development is too dependent on the coal industry,the government's improper intervention in the process of resource integrate and the defect of state-owned enterprises property rights are the reasons of coal overcapacity in Shanxi Province.Meanwhile,VAR model of empirical test was used in this paper to verify the theory analysis,the results of empirical research are in good agreement with theoretical research.The fixed assets of the coal industry are too high caused by unfavorable industrial transformation and upgrading and too dependent on the coal industry is the main reason of coal overcapacity in Shanxi.Lastly,this paper puts forward some countermeasures and suggestions according to the causes of coal overcapacity in Shanxi Province.Based on the obvious cycle characteristics of coal excess capacity in Shanxi Province,this paper established a comprehensive early warning system for coal industry capacity utilization in Shanxi Province.We can observe the status and changes of early warning indicators on the coal industry in Shanxi Province capacity utilization to track,monitor and adjust the Shanxi coal production capacity.The strategy of accelerate the industrial transformation and upgrading of Shanxi Province is significant for cutting the coal overcapacity,this strategy can solve the coal overcapacity from the root causes.The key point of solving and avoiding coal overcapacity is achieving the transformation of government functions and the marketization of coal production capacity.In Shanxi Province,the main business of coal industry is state-owned enterprises,the efficient operation of state-owned enterprises can help solve the problem of coal industry overcapacity.