Study On The Mechanism Of The Impact Of De-capacity And Operator Concentration On China's Coal Price

In the second half of 2016,in order to promote supply-side reform and optimize the industrial structure,the coal industry began to implement the capacity-removal policy.At the same time as the de-capacity policy has achieved great results,it has gradually exposed some problems in the Chinese coal industry market,that is,China's coal prices are too high and the self-depletion policy continues to rise.Excessively high coal prices have made the already tense coal-electricity contradictions more serious,and the heating situation was once severe.This round of coal price increases has made the coal industry gradually pick up.However,by comparing the coal prices in China and the United States,China's coal prices are more than twice the US coal price in the case of low coal tariffs and low labor costs in China.In recent years,they have risen rapidly and continue to operate at high levels.What is the reason for maintaining high coal prices?Driven by this problem,the preliminary research on the coal market in this paper found that coal enterprises have mergers and acquisitions,cross-shareholdings,etc.,and the coal enterprises have progressed under the promotion of de-capacity policies.This will lead to excessive coal market power.Therefore,this paper speculates that the high price phenomenon that has always existed in the Chinese coal market is because the Chinese coal market has excessive market power.Therefore,this paper mainly studies the high price of coal in China and its causes,and demonstrates that the de-capacity policy and the concentration of operators are the main reasons for the high price of coal in China.De-capacity and operators have concentrated on the market power of coal companies,thus giving them the ability to control prices.This paper intends to use the new empirical industry organization method to measure the market power of the coal market enterprise level based on the De Loecker-Warzynski model,and select the double difference method(DID)to empirically test the relationship between capacity,operator concentration and Chinese coal price,and their relationship.Path of action.The empirical results show that the de-capacity policy on the one hand promotes the increase in coal prices by reducing coal supply,and on the other hand leads to the concentration of coal business operators.Before and during the implementation of the de-capacity policy,some major coal producing areas still have coal business operators concentrated because of the lack of production capacity.The concentration of operators has led some coal companies to have market power,which in turn has raised coal prices.Further research found that the two methods of de-capacity implementation have a significant positive effect on the market power of coal enterprises and have a significant negative effect on enterprise efficiency.On this basis,the concentration of operators is caused by the promotion of coal market power Rising prices,rather than improving business efficiency,drive down prices.This paper proposes that de-capacity and concentration of operators are the main reasons for China's current high coal prices.China's coal de-capacity policy should be adjusted as soon as possible,and anti-monopoly interventions should be concentrated on unreasonable coal operators.