IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v69y2020ics0301420720308722.html
   My bibliography  Save this article

Why rent-seeking behavior may exist in Chinese mining safety production inspection system and how to alleviate it: A tripartite game analysis

Author

Listed:
  • Liu, Lu
  • Zhao, Qiuhong
  • Bi, Yanlin

Abstract

The vertical management structure is widely used in America, Japan, China and other countries for the regulation of mining. However, the safety situation of mining in China is worse than that of America or Japan. Although the vertical management structure has the advantage of relative independence, it also has some drawbacks (i.e. weakening the supervision of vertical management departments). In this paper, we analyze possible problems of vertical management structure in the Chinese mining safety production inspection (CMSPI) system from a theoretical level. It is found that rent-seeking behavior between Local Regulatory Departments of Work Safety and mining enterprises exists within the CMSPI system under situations of fluke mind existing and (or) profit weighing, which may weaken production safety and cause accidents accordingly. Considering the existence of rent-seeking behavior, we construct a tripartite evolutionary game model among the State Administration of Work Safety, Local Regulatory Departments of Work Safety and mining enterprises. In the experimental analysis, we demonstrate the tripartite interaction in the CMSPI system and analyze impact of rent-seeking on it. We show that rent-seeking cost has threshold value. By raising the punishment of illegal mining enterprises or establishing a third-party regulatory department independent of the system, rent-seeking cost can be higher than its threshold, thus the possibility of rent-seeking will be reduced. This paper contributes mainly in two aspects. First, we trail the rent-seeking behavior and its impact on the CMSPI system logically. Second, we propose suggestions, the purpose of which is to effectively reduce rent-seeking and production safety accidents with relatively low regulation cost, and further optimize the CMSPI system.

Suggested Citation

  • Liu, Lu & Zhao, Qiuhong & Bi, Yanlin, 2020. "Why rent-seeking behavior may exist in Chinese mining safety production inspection system and how to alleviate it: A tripartite game analysis," Resources Policy, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:jrpoli:v:69:y:2020:i:c:s0301420720308722
    DOI: 10.1016/j.resourpol.2020.101841
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420720308722
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2020.101841?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lambsdorff, Johann Graf, 2002. "Corruption and Rent-Seeking," Public Choice, Springer, vol. 113(1-2), pages 97-125, October.
    2. Bhagwati, Jagdish N, 1982. "Directly Unproductive, Profit-seeking (DUP) Activities," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 988-1002, October.
    3. Chen, Hong & Feng, Qun & Zhu, Dandan & Han, Shuai & Long, Ruyin, 2016. "Impact of rent-seeking on productivity in Chinese coal mine safety supervision: A simulation study," Energy Policy, Elsevier, vol. 93(C), pages 315-329.
    4. Chen, Hong & Chen, Feiyu & Zhu, Dandan & Qi, Hui & Long, Ruyin, 2015. "Burnout in Chinese coal mine safety supervision," Energy Policy, Elsevier, vol. 85(C), pages 22-31.
    5. Cronshaw, Ian & Quentin Grafton, R., 2016. "A tale of two states: Development and regulation of coal bed methane extraction in Queensland and New South Wales, Australia," Resources Policy, Elsevier, vol. 50(C), pages 253-263.
    6. Jorgen W. Weibull, 1997. "Evolutionary Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262731215, April.
    7. Liu, Quanlong & Li, Xinchun & Qiao, Wanguan & Meng, Xianfei & Li, Xiangong & Shi, Tian, 2017. "Analysis of embedded non-safety regulation games in China's two types of coal mines through safety performance disparity, 1980–2014," Resources Policy, Elsevier, vol. 51(C), pages 265-271.
    8. Chen, Hong & Feng, Qun & Cao, Jing, 2014. "Rent-seeking mechanism for safety supervision in the Chinese coal industry based on a tripartite game model," Energy Policy, Elsevier, vol. 72(C), pages 140-145.
    9. Toke S. Aidt, 2016. "Rent seeking and the economics of corruption," Constitutional Political Economy, Springer, vol. 27(2), pages 142-157, June.
    10. You, Mengjie & Li, Shuang & Li, Dingwei & Cao, Qingren & Xu, Feng, 2020. "Evolutionary game analysis of coal-mine enterprise internal safety inspection system in China based on system dynamics," Resources Policy, Elsevier, vol. 67(C).
    11. Chen, Sen-Sen & Xu, Jin-Hua & Fan, Ying, 2015. "Evaluating the effect of coal mine safety supervision system policy in China's coal mining industry: A two-phase analysis," Resources Policy, Elsevier, vol. 46(P2), pages 12-21.
    12. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    13. Andrews, Nathan, 2016. "Challenges of corporate social responsibility (CSR) in domestic settings: An exploration of mining regulation vis-à-vis CSR in Ghana," Resources Policy, Elsevier, vol. 47(C), pages 9-17.
    14. Song, Xiaoqian & Mu, Xiaoyi, 2013. "The safety regulation of small-scale coal mines in China: Analysing the interests and influences of stakeholders," Energy Policy, Elsevier, vol. 52(C), pages 472-481.
    15. Chou, Yuntsai & Liu, Kung-Chung, 0. "Paradoxical impact of asymmetric regulation in Taiwan's telecommunications industry: Restriction and rent seeking," Telecommunications Policy, Elsevier, vol. 30(3-4), pages 171-182, April.
    16. Mr. Paul R Wade & Ms. Era Dabla-Norris, 2001. "Rent Seeking and Endogenous Income Inequality," IMF Working Papers 2001/015, International Monetary Fund.
    17. Liu, Dehai & Xiao, Xingzhi & Li, Hongyi & Wang, Weiguo, 2015. "Historical evolution and benefit–cost explanation of periodical fluctuation in coal mine safety supervision: An evolutionary game analysis framework," European Journal of Operational Research, Elsevier, vol. 243(3), pages 974-984.
    18. repec:hhs:iuiwop:487 is not listed on IDEAS
    19. Seung Ginny Choi & Virgil Henry Storr, 2019. "A culture of rent seeking," Public Choice, Springer, vol. 181(1), pages 101-126, October.
    20. Ian A. MacKenzie, 2017. "Rent creation and rent seeking in environmental policy," Public Choice, Springer, vol. 171(1), pages 145-166, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Yan & Wang, Si-Xia & Yao, Jian-Ting & Tong, Rui-Peng, 2023. "The impact of behavior safety management system on coal mine work safety: A system dynamics model of quadripartite evolutionary game," Resources Policy, Elsevier, vol. 82(C).
    2. Jun Tu & Liangdong Wan & Zijiao Sun, 2023. "Safety Improvement of Sustainable Coal Transportation in Mines: A Contract Design Perspective," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    3. Li, Shuang & Yang, Qifeng & Zhang, Yuhang & Liu, Jiao, 2022. "Multi-agent evolutionary game analysis of the coal mine on-site regulatory mode," Resources Policy, Elsevier, vol. 77(C).
    4. Yin, Lijie & Yi, Jianzhou & Lin, Yibin & Lin, Decai & Wei, Baojun & Zheng, Youye & Peng, Hao, 2024. "Evaluation of green mine construction level in Tibet based on entropy method and TOPSIS," Resources Policy, Elsevier, vol. 88(C).
    5. Han, Shuai & Chen, Hong & Long, Ruyin & Jiskani, Izhar Mithal, 2022. "Can miners' social networks affect their safety commitment? A case study of Chinese coal mining enterprises," Resources Policy, Elsevier, vol. 75(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Quanlong & Wang, Jingzhi & Qiu, Zunxiang, 2023. "Data as evidence: Research on the influencing factors and mechanisms of coal mine safety supervision effect in China," Resources Policy, Elsevier, vol. 81(C).
    2. Wang, Yuxin & Fu, Gui & Lyu, Qian & Wu, Yali & Jia, Qinsong & Yang, Xiaoyu & Li, Xiao, 2022. "Reform and development of coal mine safety in China: An analysis from government supervision, technical equipment, and miner education," Resources Policy, Elsevier, vol. 77(C).
    3. Jun Tu & Liangdong Wan & Zijiao Sun, 2023. "Safety Improvement of Sustainable Coal Transportation in Mines: A Contract Design Perspective," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    4. Li, Shuang & Yang, Qifeng & Zhang, Yuhang & Liu, Jiao, 2022. "Multi-agent evolutionary game analysis of the coal mine on-site regulatory mode," Resources Policy, Elsevier, vol. 77(C).
    5. Victor I. Espinosa & José Antonio Peña-Ramos & Fátima Recuero-López, 2021. "The Political Economy of Rent-Seeking: Evidence from Spain’s Support Policies for Renewable Energy," Energies, MDPI, vol. 14(14), pages 1-16, July.
    6. Shitao Gong & Xin Gao & Zhou Li & Linyan Chen, 2021. "Developing a Dynamic Supervision Mechanism to Improve Construction Safety Investment Supervision Efficiency in China: Theoretical Simulation of Evolutionary Game Process," IJERPH, MDPI, vol. 18(7), pages 1-29, March.
    7. Matthew D. Mitchell, 2019. "Uncontestable favoritism," Public Choice, Springer, vol. 181(1), pages 167-190, October.
    8. Chen, Sen-Sen & Xu, Jin-Hua & Fan, Ying, 2015. "Evaluating the effect of coal mine safety supervision system policy in China's coal mining industry: A two-phase analysis," Resources Policy, Elsevier, vol. 46(P2), pages 12-21.
    9. Gheorghița Dincă & Marius Sorin Dincă & Camelia Negri & Mihaela Bărbuță, 2021. "The Impact of Corruption and Rent-Seeking Behavior upon Economic Wealth in the European Union from a Public Choice Approach," Sustainability, MDPI, vol. 13(12), pages 1-23, June.
    10. Andreas Assiotis & Kevin Sylwester, 2013. "Do the effects of corruption upon growth differ between democracies and autocracies?," University of Cyprus Working Papers in Economics 06-2013, University of Cyprus Department of Economics.
    11. Sass, Peter & Pies, Ingo, 2005. "Selbstverpflichtung als Instrument der Korruptionsprävention bei Infrastrukturprojekten," Discussion Papers 2005-4, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    12. Arye L. Hillman & Ngo Van Long, 2017. "Rent Seeking: The Social Cost of Contestable Benefits," CESifo Working Paper Series 6462, CESifo.
    13. Jingzhi, Wang & Quanlong, Liu & Jianping, Shang & Weichao, Niu, 2024. "Research on the impacting mechanism and enhancement strategies for the effect of safety regulation in Chinese coal mine," Resources Policy, Elsevier, vol. 91(C).
    14. Petr Wawrosz, 2022. "How Corruption Is and Should Be Investigated by Economic Theory," Economies, MDPI, vol. 10(12), pages 1-23, December.
    15. Amihai Glazer & Stef Proost, 2020. "Benefits to the majority from universal service," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(2), pages 391-408, April.
    16. Andrew Smith & Graham Brownlow, 2023. "Informal Institutions as Inhibitors of Rent-Seeking Entrepreneurship: Evidence From U.S. Legal History," Entrepreneurship Theory and Practice, , vol. 47(6), pages 2323-2346, November.
    17. Arye Hillman & Ngo Van Long, 2017. "The social cost of contestable benefits," CIRANO Working Papers 2017s-11, CIRANO.
    18. Bin, Sheng, 2000. "The Political Economy of Trade Policy in China," Working Papers 10/2000, Copenhagen Business School, Department of Management, Politics & Philosophy.
    19. Douglas Davis & Robert Reilly, 1998. "Do too many cooks always spoil the stew? An experimental analysis of rent-seeking and the role of a strategic buyer," Public Choice, Springer, vol. 95(1), pages 89-115, April.
    20. Edward C. Prescott & Stephen L. Parente, 1999. "Monopoly Rights: A Barrier to Riches," American Economic Review, American Economic Association, vol. 89(5), pages 1216-1233, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:69:y:2020:i:c:s0301420720308722. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.