Coal endowment, resource curse, and high coal-consuming industries location: Analysis based on large-scale data

Against the background of a long-term mismatch between coal-producing and consuming regions in China, this study analyzed the location of high coal-consuming industries and factors influencing it using large-scale data with 10,500 observed values for 25 industrial sectors. The results revealed that high coal-consuming industries in China are mainly located in the eastern coastal and northern areas and are gradually moving from south to north. An estimation of a 3-D panel data model showed that, in addition to the degree of coal abundance, capital stock, human resources, and market potentials affect the location of high coal-consuming industries. After controlling for dimensional influences, we also found that the tendency of high coal-consuming industries to locate in areas with poor coal resources can be attributed to the stronger effects of non-coal factors than coal-related ones. In addition, low coal-consuming industries prefer locating away from resource-abundant areas because of a “resource curse” in coal-producing regions, which further strengthens the mismatch between coal-producing and consuming regions. Our findings highlight the need for governments to prioritize improvements in infrastructure construction and education in western areas to steer industrial transfers.