IDEAS home Printed from https://ideas.repec.org/a/spr/nathaz/v77y2015i2p1125-1141.html
   My bibliography  Save this article

Economic and environmental evaluation of coal production in China and policy implications

Author

Listed:
  • Li Li
  • Yalin Lei
  • Dongyang Pan

Abstract

Coal takes up an important position in China’s energy structure. The relationship between coal resource, economic growth and environment protection has been in focus in recent research. However, both research methods and research scope need to be expanded to promote the practical effects of research results, especially studies concerning China’s situation. Here we present a detailed basis for policy making with the following objectives: (1) to examine the relationship between coal development and economic growth in China with multiple linear regression model, using the data from 1997 to 2010 and the indices of the output of raw coal, the gross value of coal industrial output, the new investment in fixed assets of coal, gross domestic product and the gross value of industrial output and (2) to measure the environmental loss caused by coal mining and washing with the given model of environmental damage cost based on the data of 2010 and the indices of waste water, waste gas, waste residues, crop loss, land resource and soil deterioration. The research results show that there is a significant positive correlation between coal development and economic growth in China. The total environmental loss in coal mining and washing in 2010 took up approximately 2.7 % of the average price of coal. Our study recommends that Chinese government and coal companies should (1) keep moderate speed in coal production; (2) increase investment in technology innovation so as to reduce the environmental damage; and (3) increase environment tax. Copyright The Author(s) 2015

Suggested Citation

  • Li Li & Yalin Lei & Dongyang Pan, 2015. "Economic and environmental evaluation of coal production in China and policy implications," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 77(2), pages 1125-1141, June.
    • Handle: RePEc:spr:nathaz:v:77:y:2015:i:2:p:1125-1141
    DOI: 10.1007/s11069-015-1650-9
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11069-015-1650-9
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11069-015-1650-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chandran Govindaraju, V.G.R. & Tang, Chor Foon, 2013. "The dynamic links between CO2 emissions, economic growth and coal consumption in China and India," Applied Energy, Elsevier, vol. 104(C), pages 310-318.
    2. Yu, Shiwei & Wei, Yi-ming, 2012. "Prediction of China's coal production-environmental pollution based on a hybrid genetic algorithm-system dynamics model," Energy Policy, Elsevier, vol. 42(C), pages 521-529.
    3. Bloch, Harry & Rafiq, Shuddhasattwa & Salim, Ruhul, 2012. "Coal consumption, CO2 emission and economic growth in China: Empirical evidence and policy responses," Energy Economics, Elsevier, vol. 34(2), pages 518-528.
    4. Li, Raymond & Leung, Guy C.K., 2012. "Coal consumption and economic growth in China," Energy Policy, Elsevier, vol. 40(C), pages 438-443.
    5. Lei, Yalin & Cui, Na & Pan, Dongyang, 2013. "Economic and social effects analysis of mineral development in China and policy implications," Resources Policy, Elsevier, vol. 38(4), pages 448-457.
    6. Zheng, Menglian & Meinrenken, Christoph J. & Lackner, Klaus S., 2014. "Agent-based model for electricity consumption and storage to evaluate economic viability of tariff arbitrage for residential sector demand response," Applied Energy, Elsevier, vol. 126(C), pages 297-306.
    7. Ge, Jianping & Lei, Yalin, 2013. "Mining development, income growth and poverty alleviation: A multiplier decomposition technique applied to China," Resources Policy, Elsevier, vol. 38(3), pages 278-287.
    8. Gutiérrez, R. & Gutiérrez-Sánchez, R. & Nafidi, A., 2006. "Electricity consumption in Morocco: Stochastic Gompertz diffusion analysis with exogenous factors," Applied Energy, Elsevier, vol. 83(10), pages 1139-1151, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Delu & Wang, Yadong & Song, Xuefeng & Liu, Yun, 2018. "Coal overcapacity in China: Multiscale analysis and prediction," Energy Economics, Elsevier, vol. 70(C), pages 244-257.
    2. Zhang, Hongli & Shen, Lei & Zhong, Shuai & Elshkaki, Ayman, 2020. "Coal resource and industrial structure nexus in energy-rich area: The case of the contiguous area of Shanxi and Shaanxi Provinces, and Inner Mongolia Autonomous Region of China," Resources Policy, Elsevier, vol. 66(C).
    3. Chun Deng & Jie-Fang Dong, 2016. "Coal Consumption Reduction in Shandong Province: A Dynamic Vector Autoregression Model," Sustainability, MDPI, vol. 8(9), pages 1-16, August.
    4. Tang, Erzi & Peng, Chong, 2017. "A macro- and microeconomic analysis of coal production in China," Resources Policy, Elsevier, vol. 51(C), pages 234-242.
    5. Jianfu Wang & Shiping Jin & Weiguo Bai & Yongliang Li & Yuhui Jin, 2016. "Comparative analysis of the international carbon verification policies and systems," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 381-397, November.
    6. Zhen Shi & Yingju Wu & Yung-ho Chiu & Fengping Wu & Changfeng Shi, 2020. "Dynamic Linkages among Mining Production and Land Rehabilitation Efficiency in China," Land, MDPI, vol. 9(3), pages 1-25, March.
    7. Hong-Mei Deng & Qiao-Mei Liang, 2017. "Assessing the synergistic reduction effects of different energy environmental taxes: the case of China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 85(2), pages 811-827, January.
    8. Jie Wu & Jun-Fei Chu & Liang Liang, 2016. "Target setting and allocation of carbon emissions abatement based on DEA and closest target: an application to 20 APEC economies," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 279-296, November.
    9. Wu, Yunna & Xiao, Xinli & Song, Zongyun, 2017. "Competitiveness analysis of coal industry in China: A diamond model study," Resources Policy, Elsevier, vol. 52(C), pages 39-53.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shahbaz, Muhammad & Farhani, Sahbi & Ozturk, Ilhan, 2013. "Coal Consumption, Industrial Production and CO2 Emissions in China and India," MPRA Paper 50618, University Library of Munich, Germany, revised 12 Oct 2013.
    2. Chu, Amanda M.Y. & Lv, Zhihui & Wagner, Niklas F. & Wong, Wing-Keung, 2020. "Linear and nonlinear growth determinants: The case of Mongolia and its connection to China," Emerging Markets Review, Elsevier, vol. 43(C).
    3. Gerui Li & Yalin Lei & Jianping Ge & Sanmang Wu, 2017. "The Empirical Relationship between Mining Industry Development and Environmental Pollution in China," IJERPH, MDPI, vol. 14(3), pages 1-20, March.
    4. Zhihui Lv & Amanda M. Y. Chu & Michael McAleer & Wing-Keung Wong, 2019. "Modelling Economic Growth, Carbon Emissions, and Fossil Fuel Consumption in China: Cointegration and Multivariate Causality," IJERPH, MDPI, vol. 16(21), pages 1-35, October.
    5. Shahzad, Umer & Schneider, Nicolas & Ben Jebli, Mehdi, 2021. "How coal and geothermal energies interact with industrial development and carbon emissions? An autoregressive distributed lags approach to the Philippines," Resources Policy, Elsevier, vol. 74(C).
    6. Nicholas M Odhiambo, 2016. "Coal consumption and economic growth in South Africa: An empirical investigation," Energy & Environment, , vol. 27(2), pages 215-226, March.
    7. Chun Deng & Jie-Fang Dong, 2016. "Coal Consumption Reduction in Shandong Province: A Dynamic Vector Autoregression Model," Sustainability, MDPI, vol. 8(9), pages 1-16, August.
    8. Taeyoung Jin & Jinsoo Kim, 2018. "Coal Consumption and Economic Growth: Panel Cointegration and Causality Evidence from OECD and Non-OECD Countries," Sustainability, MDPI, vol. 10(3), pages 1-15, March.
    9. Bhattacharya, Mita & Rafiq, Shuddhasattwa & Bhattacharya, Sankar, 2015. "The role of technology on the dynamics of coal consumption–economic growth: New evidence from China," Applied Energy, Elsevier, vol. 154(C), pages 686-695.
    10. Magazzino, Cosimo & Mele, Marco & Schneider, Nicolas, 2021. "A machine learning approach on the relationship among solar and wind energy production, coal consumption, GDP, and CO2 emissions," Renewable Energy, Elsevier, vol. 167(C), pages 99-115.
    11. Zheng Fang & Marcin Wolski, 2021. "Human capital, energy and economic growth in China: evidence from multivariate nonlinear Granger causality tests," Empirical Economics, Springer, vol. 60(2), pages 607-632, February.
    12. Adewuyi, Adeolu O. & Awodumi, Olabanji B., 2017. "Renewable and non-renewable energy-growth-emissions linkages: Review of emerging trends with policy implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 275-291.
    13. Satti, Saqlain Latif & Hassan, Muhammad Shahid & Mahmood, Haider & Shahbaz, Muhammad, 2014. "Coal consumption: An alternate energy resource to fuel economic growth in Pakistan," Economic Modelling, Elsevier, vol. 36(C), pages 282-287.
    14. Yvonne Gwenhure & Nicholas Odhiambo, 2015. "Energy consumption and growth: a review of international empirical literature," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2015(3), pages 47-70.
    15. Bhattacharya, Mita & Rafiq, Shuddhasattwa & Lean, Hooi Hooi & Bhattacharya, Sankar, 2017. "The regulated coal sector and CO2 emissions in Indian growth process: Empirical evidence over half a century and policy suggestions," Applied Energy, Elsevier, vol. 204(C), pages 667-678.
    16. Bloch, Harry & Rafiq, Shuddhasattwa & Salim, Ruhul, 2015. "Economic growth with coal, oil and renewable energy consumption in China: Prospects for fuel substitution," Economic Modelling, Elsevier, vol. 44(C), pages 104-115.
    17. Tomiwa Sunday Adebayo & Abraham Ayobamiji Awosusi & Seun Damola Oladipupo & Ephraim Bonah Agyekum & Arunkumar Jayakumar & Nallapaneni Manoj Kumar, 2021. "Dominance of Fossil Fuels in Japan’s National Energy Mix and Implications for Environmental Sustainability," IJERPH, MDPI, vol. 18(14), pages 1-20, July.
    18. Huan Zhang, 2016. "Exploring the impact of environmental regulation on economic growth, energy use, and CO2 emissions nexus in China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 213-231, October.
    19. Imen Gam, 2022. "Does a sanitary crisis drive oil prices and carbon emissions in the USA? Evidence from VECM modeling," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(9), pages 10616-10632, September.
    20. Sheilla Nyasha & Yvonne Gwenhure & Nicholas M Odhiambo, 2018. "Energy consumption and economic growth in Ethiopia: A dynamic causal linkage," Energy & Environment, , vol. 29(8), pages 1393-1412, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:nathaz:v:77:y:2015:i:2:p:1125-1141. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.