The Study On The Result Of Coal Resources Integration In Shanxi Province

With the rapid development of economy, the energy demand of China is increasing. In the energy system of our country, coal occupies a very important position. Over the years, China's coal production has been the largest in the world, the growth rate of coal production is also very impressive. Because of the coal-based energy system and the abundant high quality coal resources, the coal industry makes great contribution to GDP of China and plays an important role in the development of economy. However, there are many problems in the development of the coal industry, such as the low concentration of the coal market, the serious safety problems of the coal production, the heavy costs of coal transportation and the serious waste of coal resources. To solve these problems, the. Government introduced a series of administrative regulations, but the effect is not obvious.Shanxi is a province that has the richest coal resources in China, it provides a great impetus for the development of economy. However, the development of coal market in Shanxi is not healthy. Due to various reasons, the Shanxi coal market showed the features of "excessive, small, scattered, disorder". The coal market concentration rate in Shanxi is low, it leads the disorder competition in the coal market, the long-term low coal prices, and the low profits of coal industry, which all affect the economic development of Shanxi Province. There are a large number of small coal mines which have poor production conditions and outdated technology in Shanxi, so that the whole level of the technology is low. This directly led to great waste of energy and caused serious safety problems of coal production. In addition, the disorder coal mining caused extreme deterioration of the ecological environment and geological disasters.After making many regulations which have little effect, Shanxi Provincial Government makes a determined effort to carry out a large-scale resource integration action. They take the large group strategy and merge a large number of small coal mines. The number of coal mines reduced from 4389 in 2005 to 1053 in 2007. The policy of the integration of coal resources is different from the previous policy measures, so it is very significant to study the effect, not only to Shanxi province but also to the whole country. It provides a theoretical guidance and valuable experience to solve the problems of the coal industry.This paper describes the point of view of the three main schools of industrial organization on the efficiency of monopoly and competition, introduces coal market of domestic and foreign countries, and uses SCP framework to analyze the coal market of Shanxi. The market concentration rate of Shanxi is very low and the barriers to entry are also low before the integration which leading to a serious waste of resources and environmental issues. In 2009, the profits performance and safety performance has increased, it maybe because of the positive effect by Integration.result of integration of coal resources, one of them is the change in the concentration and the other is the change in property rights. Many academic studied the effects of the coal market performance which come from the change of property rights. The focus of this paper is the effects of the coal market performance which come from the change of market concentration rate. It selects the mortality rate, the recovery rate and profit rate as the indicators of the coal market performance, using knowledge of econometrics and data analysis to study the impact of these indicators by the change of concentration. Finally, it draws conclusions and makes relevant policies and proposals.According to the study, it leads positive implications by increasing market concentration rate. It improves the performance of the coal market, raises profitability and recovery of coal industry, and reduces mortality. These indicate that the integration of resources promote healthy development of the coal industry. Therefore, the experience of Shanxi on the integration of resources can be learned by the other provinces and comprehensively promotes the reform of China's coal industry in order to achieve healthy development of coal industry.