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

Abstract

Energy-rich areas often rely on energy resources for economic growth, but ignore structural transformation for sustainable development. Over recent years, the coal market has been depressed, leading to a decrease in economic growth along with a difficult structural transition in the contiguous area of Shanxi and Shaanxi Provinces, and Inner Mongolia Autonomous Region (SSIM), which is one of the most important national energy bases in China. To examine whether industrial structure has suffered from coal resource curse and find feasible transformation paths, a panel data model is constructed to analyze coal resource and industrial structure nexus in this contiguous area. The results show that there is a significant U-shape or inverted U-shape relationship between coal resource and industrial structure. Excessive exploitation of coal resource impedes the transformation of industrial structure to a more advanced level and could even deteriorate the rational allocation of resources among industries in energy-rich areas. “Dutch disease” and crowding out capital and technology caused by coal exploitation are the primary channels aggravating the dilemma of industrial structure transformation. Our findings highlight the significance of coordinating energy resource exploitation and industrial structure evolution in energy-rich areas.