Analysis on Mechanism of Action of Reversed Transmission of the Pressure on Adjustment of the Structure of Coal Production and Consumption in China

Abstract

The survival and development of coal industry had reached a point where its very existence was at stake in the context of overcapacity and haze siege. For solving the problems of over capacity of coal and realizing transformation of coal consumption structure, this paper discussed various mechanisms of action, which forced coal industry in China to trend toward de-capacity and coal consumption transformation and upgrade guided by marketing tools or government’s policies. The core innovation is to carry out the governance mechanism of environment pollution policy tools. The new part compared with previous work is finding that, different policy tools selection will cause different distribution effects and make the burdens of polluters consuming coal, victims and the society never stop. On the one hand it required the market mechanism of supply and demand to force de-capacity in coal industry in China and to change or even remodel operating rules in coal industry; on the other hand it made the polluters consuming coal undertake blowdown cost through the government or marketing tools so that the scientific regulation mechanism could play a decisive role in coal production and consumption.