Effect of consumer subsidies on coal mine efficiency and its transmission mechanism

Xiaofei Wang, Lirong Xu, Qin Gao, Nan Liu, Chongmei Wang and Ke Li

Energy Policy, 2025, vol. 196, issue C

Abstract: Appropriate consumer subsidies can effectively address energy poverty. However, in China, the continued high level of fossil energy consumer subsidies, influenced by the energy consumption structure, may impede the green, low-carbon, and high-quality development of energy production companies. This study examines coal mines in Shandong province from 2017 to 2021 to explore the effects of consumer subsidies on mine production efficiency and its mechanisms. The results show that technological advancements are essential for mine production efficiency improvement, but consumer subsidies have a significant negative effect on mine production efficiency, and the influence weight is −0.020. Additionally, the mechanism analysis reveals that consumer subsidies affect mine production efficiency through factors such as environmental governance, market competition, and management quality. It is proposed that reforms in the coal market, including optimizing the long-term cooperative pricing mechanism, could mitigate the negative effects of consumer subsidies and support energy structure adjustments.

Keywords: Consumer subsidies; Low-carbon development; Productivity; Transmission mechanisms (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:196:y:2025:i:c:s0301421524004324

DOI: 10.1016/j.enpol.2024.114412

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