Evolutionary trend of the coal industry chain in China: Evidence from the analysis of I-O and APL model

Abstract

The coal industry is an important part of the national economy in China which provides the necessary energy and other resources to support economic development. To alleviate environmental pressures in China, there is an urgent need to change the national structure of the coal industry and to rationally analyze the coal industry chain (CIC). To achieve this purpose, a combined methodology of input-output analysis and an APL model, was used. Input-output tables from 2002 to 2015 were adopted, and the evolution of China's industrial chain was empirically analyzed at the macroscopic level. The results of the research show that coal production and the supply of electric power, steam and hot water constitute one of the four most important industrial chains in China. Industries that are firmly related to the coal industry are the chemical industry, smelting and pressing metals, general purpose electrical equipment manufacturing, power supply, and the construction industries. The number of intermediate links between the coal industry and various industries are increasing, and the economic distance has been extended. 2005 and 2007 were the most complex years for the CIC network, as these are most closely related to each other. Since 2010, the complexity of the CIC network has decreased, and the relationship between industries has begun to decline. It is of great importance for the government of China to determine the national economic strategy and formulate relevant policies by analyzing the industrial chain relationships and its trends of evolution.