Open Access

ARTICLE

Research on the Measurement and Countermeasure of Coal Overcapacity in China: Based on Panel Data of 25 Provinces in China

Rijia Ding¹, Xingyao Zhou^1,*, Rui Zhang¹, Wanqiu Lu²

1 School of Management, China University of Mining and Technology (Beijing), Beijing, 100083, China
2 Huaneng Power International, Inc., Beijing, 100031, China

* Corresponding Author: Xingyao Zhou. Email:

Energy Engineering 2020, 117(1), 27-39. https://doi.org/10.32604/EE.2020.010372

Issue published 28 February 2020

Abstract

Coal is the main energy source in China. At present, the coal overcapacity is still serious in China. Accurately measuring the degree of China’s coal overcapacity can scientifically resolve the overcapacity, and is the premise of guiding the healthy development of coal industry and energy system. Using the translog cost function and the panel data of coal industry in all provinces of China from 2002 to 2011 and from 2012 to 2016, the research measures and compares the coal production capacity of “golden decade” and “cold winter” in China. The results show that: (1) The change of coal production capacity in China is basically consistent with the development of the economy and the coal industry reformation. The capacity utilization increased year by year in 2002, it was affected by the financial crisis in 2008, and the overcapacity was serious after 2011. (2) At present, the coal overcapacity in each province has been alleviated. We should further strengthen supervision from technology and production structure and other aspects, and continue to complete the work of coal capacity reduction.

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Citations