Abstract
An appropriate system of laws and regulations and a suitable institutional structure for administration are important requirements for the effective management of small-scale mines. Over the last twenty years, township and village coal mines in China have made a large contribution to the country’s supply of energy. Yet at the same time they have had substantial negative impacts, such as wastage of coal resources, a high casualty rate amongst miners, and a wide range of environmental damage. Two reasons for the magnitude of these externalities are the highly complex nature of the institutional structure for regulating small-scale coal mines, and the excessive and incoherent burden of applicable laws and regulations.
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