Study On Policy Of Chinese Coal Price Mechanism Reform

Coal industry is an important industry in our country. Since the establishment of China, the coal occupied a proportion more than 2/3 in the once energy consumption at all times, and will keep a nonreplaceable leading role in an unpredictable period. Along with the progress of marketization reform on coal industry, the coal price has formed a systematic problem restricting the well-liking development of Chinese coal industry. Studying the coal price in our country integrally and trying to establish a coal price forming mechanism conforming to the request of market economy not only directly influence the development and utilizing level of coal, reasonability content of industrial structure, and sustainable development of coal industry, but also relate to the harmonious and well-liking development of national economy.This paper profoundly analyzes the defects and side effects of the current coal price mechanism by stating the existing situation of Chinese coal market and coal price mechanism. In addition, it proposes the general thought and policy suggestions to the reform of Chinese coal price mechanism on the basis on research status and theoretical experience in and out of our country from the aspect of governmental management on public economy.This paper comprises of four parts:Part I is the discussion about Chinese coal price mechanism and national intervention policies. At first, it explains the theoretic mechanism of coal price. Viewed from the macroscopical aspect, there are two ways of forming coal price: the first is price determined by the supply and demand of market, and the second is the price forming by national intervention. By this way, the determination of coal price actually indicates the relation between market and government in this field. Secondly, it introduces the coal price systems of foreign coal production countries. America, South Africa and Germany have carries out successful exploration and practice on the reforms of strengthening legislation management, optimizing market development, and supporting transportation, etc. The gains for our country are as following: firstly, for the purpose of regulating energy management mechanism, the government should set up special price supervising organization to manage and monitor the price of coal and electricity power; the second is to cultivate the main body of market competition, break the market monopolization to promote fair competition; the third is to perfect the market information and regulate the rules. The long term contract on coal supply between the manufacturers of coal and electricity or"combining business of coal and electricity"are beneficial to the stability of supply and assure the stability of coal price; the fourth is to perfect the market trade mechanism. The fixing and implementation of price should pay both attention to the cost and interest of consumers. Thirdly, it explains the national intervention theory in transition economy systematically. On the basis of summarizing experiences and failures in the economic and social development of transition countries, the foreign scholars point out a way for the government on how to orient its own role, harmoniously propel the construction of all systems in the process of transition giving attention to the economic and social endurance, and rationally control the rhythm and process of reform in the special period of transition economy and economic globalization. These theories are instructive for further promoting and perfecting the reform of coal price mechanism.Part II is the profound analysis on the defects and side effects of current coal price mechanism in Chinese on the basis of demonstration. At first, it introduces the development process and existing situation of Chinese coal price mechanism. From the time order, it is divided into three periods: the first period is totally planned price stage (since the establishment of country to about 1985), when the country regulated the coal price to implement the one-track mechanism of price; the second is multiple planned price stage (from about 1985 to 1992), when the country controlled most part of the coal price to implement the"Dual-Track"mechanism; the third is a transition stage of coal price to marketization (since 1993 till now). The country gradually releases the control to coal price after 1993, and completely released the electricity and coal price till 2002. During the ten year, the electricity and coal still carried out the price directed by government. In Dec., 2006, the dual-track mechanism of coal supply was cancelled formally, which indicated that the electricity and coal price entered the rail of marketization completely; finally it states the current coal price mechanism of our country.At present, the major defects exist in the coal price mechanism of our country: one is the irregular mechanism of coal supply and demand; the second is unreasonable composition of coal price; the third is the unreasonable price relation between coal and other energy resources; the irregular price forming mechanism for a long term leads to the distortion of coal price and market price signal, which not only increases the self efficiency loss of coal industry and financial burden of government, but also causes the resources waste of other industries and difficulties on adjustment of national economy structure. By this way, the shorter line becomes shorter, and the longer ones longer, which fastens the structural unbalance of our economy.Part III analyzes the relevant factors affecting the coal price mechanism in our country.At first, it analyzes the factors of market competition. Taking coal used for electricity as example, the factors of market competition affecting the coal price reform are analyzed. It points out that the government plays a non-neglectable role in many aspects of industrial structure. Viewed from the existing situation of Chinese coal price mechanism reform, the duty of government is to smoothen the economic mechanism and promote the fair competition in industry aiming at the overlay of confliction of industrial mechanism and industrial competition. Secondly, it analyzes the factors affecting the coal price mechanism, which are indicated in three aspects: one is that the management mechanism reforms of electric power and coal are unharmonious; the second is the defects still exist in the design of releasing coal price policy; and the third is the management mechanism of national energy is not smooth. Thirdly, it analyzes the restrictions of transportation capacity on the market price of coal. As coal resources are mass goods, and the main production places are far from the consumption areas, the transportation capacity directly influences the availability and price of coal.Part IV proposes policy suggestions to perfect the coal price mechanism in our country aiming at the defects in current coal price mechanism and side effects. We get the conclusion from the analysis that, it is the premise for sustainable development of coal industry to promote the marketization reform of coal price mechanism enabling the price to sensitively reflect the demand and supply relations in the market and the shortage of resources, and playing basic role of market mechanism in the price forming of resource products.It proposes the suggestions on the policies of perfecting coal price mechanism making reference to the theory and practice of domestic and foreign research: the first is to intensify the behaviors keeping away improper competition; the second is to deepen the management mechanism reform of national energy resources; the third is to fasten the mechanism reform of coal industry and relevant fields such as electricity power and railway; the fourth is to accelerate the reform of cost accounting mechanism and coal tax mechanism in coal enterprises; the fifth is to regulate the laws and regulations mechanism for coal industry to supply legal basis for coal trade market management; the sixth is to set up coal price management organization to unifiedly supervise and coordinate the coal price in the whole country; and the seventh is to play the role of industrial organization in the Third Department to improve the self-discipline ability of enterprises.The instructive thought for perfecting the coal price mechanism is to actively and stably promote the establishment and perfect of coal price mechanism considering the social and economic development level and the capacity of users with scientific development view as leading, combining the market allocation resource and national macroeconomic control according to the request of socialistic market economy under the premise of effective coal supply without increasing financial burden to the country. In addition, perfecting the marketization reform of coal price mechanism must insist on the principle of"market oriented and government controlled, making overall plans and taking all factors into consideration, promoting supporting, collectively design, and gradual implementation", grasp the proper opportunity to promote stably under the premise of keeping stable general price level.