Coal mining in China: policy and environment under market reform

Abstract

PurposeThe purpose of this paper is to identify the main environmental impacts of coal mining in China, examine the main institutions and reform factors that failed the control of these damages, and discuss what would be necessary to establish a sustainable and environmentally responsible coal mining sector in the context of market and institutional reforms.Design/methodology/approachReview of existing knowledge, and semi‐structured interviewing with key informants in the policy and industry sectors has been the main method of primary and secondary data collection. Grounded theory was used to analyze original data.FindingsThe large and fast growing coal industry in China has caused significant environmental degradation, including land subsidence and water intrusion, as well as remarkable records of miner's poor safety and health. Market reform was mostly unsuccessful in integrating environmental consideration into production and marketing decisions. Main factors of reform that have been associated with this problem are price deregulation and excessive competition inside the industry. Institutional reform, in fact, enhanced the status of State Environment Protection Agency; however, it impaired environmental governance in the coal industry. It is suggested that market reform as applicable to the China coal industry economic sector in particular should reconsider its approach in light of the numerous problems it has created.Originality/valueThe paper identifies and puts together the condition of the growing coal industry in China after market reform, articulating the huge environmental costs that this development has imposed on the country, while calling for an environmentally sustainable coal industry.