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Economic and environmental evaluation of coal production in China and policy implications

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  • Li Li
  • Yalin Lei
  • Dongyang Pan

Abstract

Coal takes up an important position in China’s energy structure. The relationship between coal resource, economic growth and environment protection has been in focus in recent research. However, both research methods and research scope need to be expanded to promote the practical effects of research results, especially studies concerning China’s situation. Here we present a detailed basis for policy making with the following objectives: (1) to examine the relationship between coal development and economic growth in China with multiple linear regression model, using the data from 1997 to 2010 and the indices of the output of raw coal, the gross value of coal industrial output, the new investment in fixed assets of coal, gross domestic product and the gross value of industrial output and (2) to measure the environmental loss caused by coal mining and washing with the given model of environmental damage cost based on the data of 2010 and the indices of waste water, waste gas, waste residues, crop loss, land resource and soil deterioration. The research results show that there is a significant positive correlation between coal development and economic growth in China. The total environmental loss in coal mining and washing in 2010 took up approximately 2.7 % of the average price of coal. Our study recommends that Chinese government and coal companies should (1) keep moderate speed in coal production; (2) increase investment in technology innovation so as to reduce the environmental damage; and (3) increase environment tax. Copyright The Author(s) 2015

Suggested Citation

  • Li Li & Yalin Lei & Dongyang Pan, 2015. "Economic and environmental evaluation of coal production in China and policy implications," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 77(2), pages 1125-1141, June.
    • Handle: RePEc:spr:nathaz:v:77:y:2015:i:2:p:1125-1141
    DOI: 10.1007/s11069-015-1650-9
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    References listed on IDEAS

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    Cited by:

    1. Wang, Delu & Wang, Yadong & Song, Xuefeng & Liu, Yun, 2018. "Coal overcapacity in China: Multiscale analysis and prediction," Energy Economics, Elsevier, vol. 70(C), pages 244-257.
    2. Zhang, Hongli & Shen, Lei & Zhong, Shuai & Elshkaki, Ayman, 2020. "Coal resource and industrial structure nexus in energy-rich area: The case of the contiguous area of Shanxi and Shaanxi Provinces, and Inner Mongolia Autonomous Region of China," Resources Policy, Elsevier, vol. 66(C).
    3. Chun Deng & Jie-Fang Dong, 2016. "Coal Consumption Reduction in Shandong Province: A Dynamic Vector Autoregression Model," Sustainability, MDPI, vol. 8(9), pages 1-16, August.
    4. Tang, Erzi & Peng, Chong, 2017. "A macro- and microeconomic analysis of coal production in China," Resources Policy, Elsevier, vol. 51(C), pages 234-242.
    5. Jianfu Wang & Shiping Jin & Weiguo Bai & Yongliang Li & Yuhui Jin, 2016. "Comparative analysis of the international carbon verification policies and systems," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 381-397, November.
    6. Zhen Shi & Yingju Wu & Yung-ho Chiu & Fengping Wu & Changfeng Shi, 2020. "Dynamic Linkages among Mining Production and Land Rehabilitation Efficiency in China," Land, MDPI, vol. 9(3), pages 1-25, March.
    7. Hong-Mei Deng & Qiao-Mei Liang, 2017. "Assessing the synergistic reduction effects of different energy environmental taxes: the case of China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 85(2), pages 811-827, January.
    8. Jie Wu & Jun-Fei Chu & Liang Liang, 2016. "Target setting and allocation of carbon emissions abatement based on DEA and closest target: an application to 20 APEC economies," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 279-296, November.
    9. Wu, Yunna & Xiao, Xinli & Song, Zongyun, 2017. "Competitiveness analysis of coal industry in China: A diamond model study," Resources Policy, Elsevier, vol. 52(C), pages 39-53.

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