Overcapacity Risk of China’s Coal Power Industry: A Comprehensive Assessment and Driving Factors

Delu Wang, Xun Xue and Yadong Wang
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Delu Wang: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
Xun Xue: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
Yadong Wang: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China

Sustainability, 2021, vol. 13, issue 3, 1-21

Abstract: The comprehensive and accurate monitoring of coal power overcapacity is the key link and an important foundation for the prevention and control of overcapacity. The previous research fails to fully consider the impact of the industry correlation effect; making it difficult to reflect the state of overcapacity accurately. In this paper; we comprehensively consider the fundamentals; supply; demand; economic and environmental performance of the coal power industry and its upstream; downstream; competitive; and complementary industries to construct an index system for assessing coal power overcapacity risk. Besides; a new evaluation model based on a correlation-based feature selection-association rules-data envelopment analysis (CFS-ARs-DEA) integrated algorithm is proposed by using a data-driven model. The results show that from 2008 to 2017; the risk of coal power overcapacity in China presented a cyclical feature of “decline-rise-decline”, and the risk level has remained high in recent years. In addition to the impact of supply and demand; the environmental benefits and fundamentals of related industries also have a significant impact on coal power overcapacity. Therefore; it is necessary to monitor and govern coal power overcapacity from the overall perspective of the industrial network, and coordinate the advancement of environmental protection and overcapacity control.

Keywords: overcapacity; risk assessment; data-driven; industry correlation; coal power industry (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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