Research On The Elimination Path Of China Coal Overcapacity

Overcapacity has become a new normal of China's coal industry when China comes into the twelfth five-year plan.With the basic energy of our whole national economic development,overcapacity of coal has lead to many negative impacts.What's more,the sound development of coal industry can have a significant effect on overall economy.Overcapacity of coal industry should be thoroughly researched and the research will have great value to help coal industry out of trouble and to find an effective path for resolving overcapacity.Firstly,combined with relative experience of the determination of overcapacity in and abroad,it summarizes the conclusion that China's coal industry has overcapacity,coming from four main aspects: the trend of coal's price and inventory,the state of earnings,supplies and demands of the coal market and the situation of coal's imports.Besides,it uses the Business Cycle Theory,the Market Expectations Theory,the Economies of Scale Theory and the Government Intervention Theory to analyze the formation causes of the overcapacity in China's coal industry;Next,based on the formation causes of overcapacity,this article tries from the multiple perspectives to analyze the overcapacity and finds main force for settlements;Finally,on the basis of the previous analysis,the paper combined the game theory with microeconomics theory to make the selection of the path to resolve the excess capacity of China's coal production,then come to the conclusion that “the policies guide the market ”is the best path to resolve the overcapacity in the coal,at the same time design the path from four aspects: clear the resolve object,provide the different resolve ways for the different coal's overcapacity,design the relevant mechanism about the resolve the overcapacity in coal,design the industrial means and dispose the related production elements in the process of resolve the coal's overcapacity.In order to guarantee the implementation of the resolve path,this article puts forward some important issues during the process of resolving the coal industry overcapacity.