Path dependence, fragmented property rights and the slow diffusion of high throughput technologies in inter-war British coal mining

Abstract

This article examines the importance of path dependence effects in impeding the diffusion of high throughput mechanized mining systems in the British coal industry. It demonstrates that the industry had become ‘locked in’ to low throughput underground haulage technology, on account of institutional interrelatedness between Britain’s traditional practice of extensive in-seam mining and its unique system of fragmented, privately owned mineral royalties. Fragmented royalties prevented the concentration of workings and introduction of high throughput main haulage systems that underpinned the rapid productivity growth of European producers. Meanwhile, technical interrelatedness between the haulage systems taking coal to the pit shaft and operations further ‘upstream’ created bottlenecks which both slowed the overall rate of mechanization and limited the productivity gains from the mechanization that did occur.