Crowding-out effect of coal industry investment in coal mining area: taking Shanxi province in China as a case

Abstract

The rapid development of coal industry in Shanxi province in China has important effects on its economic development. A large amount of money has been invested into the coal industry and other related industries during the recent years. However, research on the investment effect of Shanxi’s coal industry was rare. In order to analyze the investment effect of coal industry, based on the crowding-out effect model, cointegration test, and the data available in Shanxi Statistical Yearbooks, this paper calculates the effect between coal industry investment and other 17 industry investment. The results show that the investment of coal industry produces crowding-out effect on food industry, building materials industry, and machinery industry. Increasing 1% of the coal industry investment can reduce 0.25% of the food industry investment, or 0.6% of building materials industry investment, or 0.52% of the machinery industry investment, which implies that Shanxi province should adjust coal industrial structure, promote the balance development of coal industry and other industries, so as to promote its economic growth.

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Acknowledgments

The authors express their sincere thanks for the support from the National Science and Technology Major Project under Grant No. 2016ZX05016005-003, the National Natural Science Foundation of China under Grant No.71173200, the Development and Research Center of China Geological Survey under Grant No. 12120114056601 and No. 12120113093200, Research Institute of Petroleum Exploration & Development: Research on the benefit evaluation index system of overseas single well under Grant No. H0719603, China Scholarship Council under Grant No. 201706405007.

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Correspondence to Yalin Lei.

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Li, L., Lei, Y., Xu, Q. et al. Crowding-out effect of coal industry investment in coal mining area: taking Shanxi province in China as a case. Environ Sci Pollut Res 24, 23290–23298 (2017). https://doi.org/10.1007/s11356-017-9915-3

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Keywords

  • Coal industry investment
  • The crowding-out effect model
  • Cointegration test
  • Impact assessment
  • Shanxi province