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Transformation and Development of Coal Cities in Inner Mongolia and Shannxi Provinces:Relevant Approaches and Policy Options


By Zhou Jianqi, Enterprise Research Institute and Li Zuojun, Research Institute of Resources and Environment Policies, DRC

Research Report No 193, 2015 (Total NO 4878) 2015-12-21


Coal resource-rich cities in Inner Mongolia and Shannxi Provinces are facing numerous difficulties.The economic growth is dragged down by coal industry, an increasing number of enterprises are shutdown or partly shutdown, municipal debt risks are increasing and the economic mix is still dominated by coal.The focus of transformation and development of this kind of cities is not to pursue economic growth, but to reinforce the economic foundation, contain the rapid decline of growth rate, support the overall development of cities at an appropriate pace, and explore a development path featuring integrated planning of resource utilization, city transformation and coal enterprise development. The basic approach is to fully unleash values of coal resources including fuels and raw materials, make breakthroughs in non-fossil fuels by category, shift the focus of development from city construction onto city services and lay emphasis on warding off the risks of corporate withdrawal. The policy options are as follows: issue comprehensive polices featuring differentiated and market-based coal industry in Inner Mongolia and Shannxi Provinces, nurture new growth drivers for coal resource-dependent cities in both provinces through regional cooperation, accelerate the phasing out of low-end inefficient processing capacities and set out supportive policies for warding off key risks.

Key words: transformation and development, approach, coal cities in Inner Mongolia and Shannxi Provinces