Impact of rent-seeking on productivity in Chinese coal mine safety supervision: A simulation study

During the “golden decade” (2001-2011) of the coal industry in China, rent-seeking increased in coal mine safety supervision alongside significant improvements in coal mine safety status and increased economic benefits in the coal industry. To explore this internal relationship, we developed a Matlab simulation system and simulated the impact of rent-seeking from each level of the supervision department on coal mine productivity in different scenarios. The results showed the following. (1) Rent-seeking had no significant influence on the average level of material productivity but it had an adverse effect on the average level of mental productivity. Due to the effects of rent-seeking, productivity tended to exhibit unstable and destructive fluctuations, and rent-seeking had the dual effect of promoting and restraining productivity in a wide range with a high frequency. (2) In the supervision scenario, supervision by the high-level department was efficient, and productivity was promoted more by the national and provincial supervision department. (3) In the rent-seeking scenario, each level of the department had an intensity threshold above which coal mine accidents occurred. We also propose suggestions that focuses on the improved supervision of Chinese coal mine safety in three areas based on the “new normal” safety concept.