Empirical Analysis On Contribution Share Of Safety Investment To Mining Economic Growth And Social Division Of Safety Input

Insufficient safety input is the principal one in Chinese mining industries among various factors that could trigger accidents. And the root cause of insufficient safety input is that the cognition to safety input and its contribution to the economic development are insufficient. The importance of mine safety work in the production and operating activities also depends on its own value. How much the contribution of safety input in the mining industry production and operating activities is? The evidence simply will not permit confident answer. Studies on input and performance of safety at home and abroad focus on qualitative analysis. Safety input is generally felt unnecessary or too costly to manufacturers and has long been regarded as a'sunk cost', lacking output. Little attention from mining companies was focused on increasing safety input according to technical codes or technical requirements, which results from safety input penetrated into the production input, and investment in safety was in advance of its benefit. Therefore, there are very important practical and theoretical significance to study the safety input and its performance for quantitative analysis.In view of the problem of the safety input and safety performance in the mining, by analyzing the theories and methods of the existing safety input and safety performance and combining with the particularity of mine safety, the set of production safety indexes will be studied by using safety theory and safety economic theory. Contribution share of safety investment to economic growth (CSS) can be defined in economic terms. A mining economic growth model will be constructed on the basis of the new production safety indexes with co-integration theory and dynamic modeling system to study the CSS of mining in China. And the division of mining investment in safety will be analyzed on the base of empirical study using game theory. These conclusion and results can be drawn that:①Contribution share of safety investment to economic growth (CSS) can be defined as, in economic terms, a share of the growth of safety performance in that of economy. That is, CSSS=(Safety performance growth per year)/(Economic growth)×100%.CSS can reflect the scale and quality of capital services and labor services, and its value depends on the relationship of growth rate of safety and that of the economy.②The safety factors of influencing economic growth was studied on the basis of these analyzing of accidents causes theory, the nature of accidents, methods for inherent safety and the accident causes sequence of mining accidents deaths. A new set of production safety indexes including six sub-indexes for describing the safety level of mining production in China was constructed The six sub-indexes are mining total investment in fixed assets per 10,000yuan gross output value, number of mining professional personnel per 10,000employees, number of mining management personnel per 10,000 employees, mechanized level of mining, level of mining safety production environment and level of mining technology development capability. According to the data features and graphical analysis of the new indexes during 1991-2009, it is validated that the new index better describe the safety status of China's mining production.③It is validated that there are significant causality between the number of deaths in mining occupational accidents and production safety indexes by using Granger causality test. The PCA on six sub-indexes of mining production safety indexes shows that the top three are level of mining technology development capability, level of mining safety production environment and mechanized level of mining. It indicates that investment in these areas should be the direction to focus for improving the safety level of mining production in the limited funds. Although the growth rate of safety level of mining production is faster than that of mining economic development on the surface since 1991, the harmonies between the safety level of mining production and the development state of mining economic by using identity-difference-opposition analysis method showed that, the former is falling relative to the latter.④With co-integration theory and dynamic construction model, a mining economic growth model on the basis of the new production safety indexes simulates prime movement of China's mining economic growth. The empirical results show that the production safety factor in the short term indeed drives the output value growth in the mining industry although labor and capital input remain the major factors impacting mining economic growth, and its long term contribution share is 7.7%. Estimating CSS should be combined with examining the level of production safety indexes. The length of time should be measured for medium-and long-term (such as 5 years), and the rolling 5-year industry average production safety indexes can be designated as an appropriate safety criterion at an acceptable risk level. This work may establish a useful base for evaluating enterprises'safety input and continuous improvement in the safety field.⑤Through empirical analysis on CSS, it is verified that there is a higher CSS in the high-risk industry than in the low-risk industry.⑥By using the game theory, we come to some conclusions about the main reasons of mining safety input game. These conclusions include that there are goal difference between government and mine enterprise, current liability system of safety input is imperfect, mining's safety input isn't being watched carefully enough. Then, we put forward six countermeasure suggestions for improving safety level of mining production.The method of calculating CSS on the basis of the economic growth model including the production safety indexes can be used to calculate the CSS in the other industries.