China's Economic Reliance on Coal Production and Consumption

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China, being the world’s second largest economy, is known for its substantial export of goods and services across the globe. Ever since the economic reformation of the country in 1979, China has seen rapid industrialization and modernization of both its economics and throughout its society. Such a change was largely due to the acceptance and transition into Western capitalist ideals and values of a progressive and accumulating economy. China has hence become dominant within both the technological and industrial sectors of the world, and such growth can largely be attributed to the nation's export of goods and the industrial sector at large. Such an economic change is substantially influenced by the Chinese Communist party's economic agenda in attaining a higher GDP as well as raising its standard of living for all Chinese citizens. In order to fuel the rapid growth of China’s economic industries, the use of coal and the production of coal can be attributed as the major factors in contributing to the substantial rise of China’s economy.

Statement of connection and why you chose it

As a sociology major, it is vital for one to investigate the connection between societal development and patterns of social change, in relation to the trends and features of economic progression, as well as government intervention and planning. The overall exponential rise of China’s economy and the socio-economic progressions seen within Chinese society is largely attributed to its export economy as well as state-capitalist agenda of the Chinese government, in which emphasizes its role in industrial output as well as natural resource production, as the building blocks in supporting the economic expenditure and the overall rise of China’s standard of living. Coal being China’s number one natural resource, has been deemed as the most vital resource in fuelling its economic growth, and in turn allowing major societal changes to occur within the country. However, being the world's largest consumer of coal, China has also been heavily affected by the environmental impacts of its coal consumption, resulting in intense pollution within the country, as well as leading carbon dioxide emissions around the globe. Hence it is crucial to understand what impact China’s coal production and consumption hold for Chinese society, as well as for the environment of Earth.

Introduction to Coal

Formation of Coal

Coal is a combustible fossil fuel which contains a large amount of carbon-based material. As discussed within module 3, coal being an organic sedimentary rock composed mainly of carbon, it is a product of the rapid burial of organic matter by sediments and preservation seen within rocks of all ages. Due to burial of the organic plant matter, and ongoing sedimentation, leads to diagenesis and in turn leads to coalification of the matter, due to the carbon composition.[1] The formation of coal from such a process will take on a scale of millions of years to occur. The main processes which occur during the formation of coal is that of peatification and coalification[1]. During peatification, organic plant matter within swamp and waterlogged environments (wetlands)[1] undergo bacterial decay, which in turn yields carbon dioxide and methane[1]. As the plant matter is buried under sediment, exposure to air is halted and leads to decomposition of the material by anaerobic bacteria[1]. As the accumulation of buried organic continues, peat is formed. Coalification occurs as the physical and chemical properties of the peat changes due to the pressure and temperature through compaction[1]. As burial of the peat continues, compaction occurs and leads to loss of water content in the peat, and thus formation of different ranks of coal occurs the more pressure and temperature as well as time the pear spends in burial*. The stage of coalification characterizes the different ranks of coal[1], lignite being the youngest, lowest ranking of coal with a low energy content and heating value, high moisture content and low carbon content containing only 25-35%, followed by sub-bituminous coal which consists of 35-45% carbon[1], followed by bituminous coal which contains 45-86% carbon[1], and Anthracite which is the highest ranking of coal which consists of 86%-97% carbon, and the highest heating value of all coals.[1]


Overview of China’s Coal Production:

Geology of China’s Coal

Coalfields of China Classified by Age

Coal is China’s most abundant natural resource. Being the world’s largest coal producing nation, the country ranks 4th in terms of coal reserves in the world, acquiring 149,818,259,000 tons of the resource within its reserve [2]. The major coal producing provinces of China are ShaanXi, Shanxi, Inner Mongolia and Hebei[2] (Coal In China, 2012). The high presence of coal within these regions is due to coal formation in which occurred during the geological periods of the Middle Devonian, Carboniferous and Early Permian (C–P1), Late Permian (P2), Late Triassic (T3), Early and Middle Jurassic (J1-2), Late Jurassic and Early Cretaceous (J3–K1), and Eogene and Neogene (E–N) [3](Han and Yang 1980; Han et al. 1996; Dai et al. 2012;). Therefore, a variety of regional and regularity attributes are seen due to the distribution of the coal-bearing strata, and hence allowing six types of coal-bearing basins to arise due to the plate-tectonic settings [4](Li, 2016). Large epicontinental sea basins are a feature of the coal bearing basins formed during the Palaeozoic Era, as the shallow sea is deemed as the most substantial sedimentary environment [4](Li, 2016). The late Palaeozoic Era’s coal forming sedimentary environments were characterized by the coastal delta and delta-detrital coast systems [4](Li, 2016). The coal-forming sedimentary environments of the Late Triassic are characterized by offshore basins, as well as the coast-delta, coastal alluvial and coastal inter-mountainous plain environments, along with coast-bay and lagoon-estuary systems [4](Li, 2016). The coal-bearing basins of the Early-Middle Jurassic were characterized by large to medium sized inland lake basins, alluvial lake-delta systems, as well as lakeshore sedimentary environments [4] (Li, 2016). Lastly, the coal-bearing basins of the Early Cretaceous and Palaeogene-Neogene Periods were attributed to the coal forming which occurred in the lake-delta swamp environments during lake siltation stages [4](Li, 2016).

Map of Chinese Coal Deposits and Coal Production

Types of Coal Found in China

Based on data of coal production in China prior to 2008. The production of coal in China primarily focuses on bituminous coal, with a small percentage focused on anthracite[5]. 1980 to 2005 saw an increase in all 3 types of coal, with 1998 and 2001 being exceptions[5]. The production share of all three types of coal remained constant however, bituminous coal however has seen the most drastic increase in production during the rapid economic development of the nation, rising from 467 million tonnes in 1980s to 1567 million tonnes in 2005[5].


Coal Production

Coal has been regarded as the most vital resource both to China’s economy, but also the lives of Chinese citizens. Being the most major natural resource in China, the major coal industries of China are owned and operated by state run organizations such as the China National Coal Group, which is directly managed by the State-owned Assets Supervision and Administration Commission of the State Council[5]. As of April 202, there were about 2.5 million workers employed in China’s coal industry, in addition to an unnumbered number of employed workers in the many illegal privately owned coal mines within the country[6]. In 2021, China recorded its record output for coal production, as it produced 4.07 metric tons of the natural resource due to the increased demands on energy by the country's various economic sectors [7]. Furthermore, the majority of the coal produced within the nation is consumed primarily within China compared to the amount in which the resource is exported. Due to this, China currently consumes more than half the world’s coal burning three billion tonnes in 2020 alone[8]. Though coal is regarded as the most abundant natural resource in China, the country is deemed as self-sufficient in the resource, and prioritizes utilizing the natural resource produced domestically rather than exporting for profit[8]. Hence, coal production within China can be said to be the fuel for economic development and energy consumption within the country, rather than an export commodity. Lastly, due to the economic down trend seen in China in 2020 due to the Covid-19 pandemic, the need for the top coal producing provinces to ramp up coal production to meet heightened economic production and energy consumption[9], was seen through the direct “supervision and guidance” of China’s National Energy Administration, which sought to “release advanced production capacity” in hopes of boosting domestic supply and production productivity [9].

China Coal Production Chart 2009-2020



Chinese Communist Party’s influence on coal production.

Coal production in China is largely driven by state investments as well as economic structural planning stimulated by the Chinese Central Government[10]. During the economic reformation of China, the majority of mining production was attributed to “commune and brigade enterprise” [10] which serves to profit state run and government run enterprises more heavily. However such a system was later replaced by “township and village enterprises” which enabled a higher degree of economic and political autonomy, and incentivized local participation in coal production*. Such a reform allowed total expansion of coal production from 18% in 1980 to 48% in 1996 [10]. Purchase programs and the ability to incentives pricing policies from selling to coal to the Central Government of China, such as the ability to negotiate amount of production/yield with level of product pricing[10], further generated the prospect of producing coal across the nation. The Mineral Resource Law of 1986 allowed legal rights of exploration of coal mines and licensing of mining lands to be transferred from the Chinese Central Government, to local governments as well as local entrepreneurs[10], though governance and export licensing of such corporations still remain primarily within the control of the Central Government*. Overall, ownership of coal mines and coal production still however, remain largely within the control of the Chinese Governments[10] Ministry of Resource, though “collective and private mines” do produce higher rates of coal production compared to government run operations[10].


How Chinese Coal is Mined.

The majority of coal production and extraction in China 96% occurs in underground mines, due to the fact that coal seams occur in geological conditions in which are too harsh for surface mining*. Technological advancements in coal mining within China has allowed for the long-wall mining systems to take place, which now accounts for 92% of the coal mining processes within the country[11].

Long-Wall Mining


Coal Consumption within China:

China Coal Statistics (2021)

Coal consumption in China has a long history dating back as early as 6000 years ago during the Bronze Age of China. One of the earliest suspected coal mines found is that of the Fushan mine, which dates back to around 1000 BC[2]. Coal was generally utilized for heating purposes substituting that of traditional timber as seen in Western Civilizations. The economic reformation of China in the 20th century sparked a new state of dependence on Coal within the nation and increased the rate of coal consumption drastically in order to supply the rate of its industrial activities and economic processes all together[12]. To date, China holds 50.5% of the world share in coal consumption, with a yearly coal consumption of 4,319,921,826,000 (MMcf) and 3,055 cubic feet per capita, according to worldometer. The enormous rate of coal consumption in China is due to the fact that the natural resource provides 69 percent of the nation's primary energy and 80 percent of its electricity during its economic boom in 2011 [13]. Being the largest importer of coal in 2019, China imports around 308 Mt of coal compared to 249 Mt by India. The rise of coal consumption within China, from 1.06 billion metric tons in 2011 to 4.02 billion billion metric tons in 2019 means that China’s dependency on coal is still witnessing an uptrend, according to Chinapower [13]. Furthermore, the manufacturing sector of China accounts for 55 percent of China’s total energy consumption in 2019, and 59.6 percent of the sector's energy supply came from the use of Coal [13]. The economic industry of China itself accounts for 66% of the country's total energy consumption in 2019. However, China did see a decline in coal consumption compared to previous years in 2020, as 56.8% of China’s energy derived from coal, in contrast to much higher rates during the initial years of its high economic growth [13].

Environmental Impact of Chinese Coal Use

Each Country's Share of CO2 Emissions (2019)

China currently is the world’s largest emitter of carbon dioxide in the world, due to its drive for higher economic development. As mentioned, as of 2021, China attains a yearly coal consumption of 4,319,921,826,00 MMcf [14], which accounts to 50.5% of the total world share of coal consumption. Coal remains to dominant greenhouse gas emissions in China, and due to the high coal consumption rate, China’s 2021 carbon dioxide emissions have increased by 3.4% compared to the previous year to 14.1 Gt Carbon dioxide [15]. Such an increase in carbon dioxide emissions is largely attributed to the Chinese government's economic planning and strategic policies in which sought to recover the economic hardships the nation faced during the Covid-19 pandemic[15]. As such, the environmental consequences of China’s coal use, lead to it being the largest source of air pollution within the country[15] as well as drastic increase of greenhouse gas emissions around the globe. Estimates have shown that the health impact of the carbon dioxide emissions from coal combustion have dire consequences for Chinese society, as it contributed to 366,000 premature deaths in 2013[16]. Furthermore, health and pollution damages in which occurred within the country has lead to over $38 billion dollars of cost per year[16], which can only be covered by heightened economic development and activities, which may lead to more coal consumption. Environmental risks such as climate change however, are viewed as the most substantial long term consequence for the high use of coal in China, as the Chinese Meteorological Administrations 2019 report have discovered that the countries coal combustion is directly related to the more frequent and intense extreme weather, glacier retreat, significant flooding and rising sea level within the country, as well as the overall increase of the globes temperature due to increase greenhouse gas emissions[16].

How Carbon Dioxide Emissions Contribute to Climate Change

Carbon dioxide emissions are the largest man made contributor to the increased greenhouse gasses within the Earth’s atmosphere[17]. According to the U.S Environmental Protection Agency, 65% of global greenhouse gas emissions in 2010 is carbon dioxide from fossil fuel and industrial processes[17]. As a greenhouse gas, energy from the sun which is radiated by the Earth is partially trapped in the atmosphere by the carbon dioxide[17]. The trapping of this energy within Earth’s atmosphere allows for the warming of Earth’s surface[17]. However, as man made Co2 emissions increased due to the industrialization of economies as well as for fuelling transportation, an exponential increase of Co2 emissions occurred across the world, which led to the increased greenhouse gasses in the atmosphere, which in turn led to increased average global temperatures.

Diagram of Greenhouse Effect

Future of Coal and Renewable Energy in China.

As of 2020, during the General Debate of the 75th Session of the United Nations General Assembly, Chinese president Xi has pledged that the China will achieve carbon neutrality “before 2060” and peak its carbon emissions “before 2030”*[18]. Hence, China has become the leading investor in clean energy transition*, investing in 226 billion in energy transition measures[18], which accounted for more than one-third of the global total (755 billion) investments*.  China has also set to make hydroelectric power as the countries current main source of renewable energy*. With the construction of hydro-electric dams across the nation, particularly the Three Gorges Dam, China overtook as the world leader in hydropower in 2014, and held 30.1% of the globe's hydroelectricity generation in 2019 [18]. The development and utilization of photovoltaic (PV) energy has also become a goal for the country, and as of 2019, China has become the leading supplier and consumer of solar PV[18]. Two thirds of the world’s solar-production capacity has also been credited to China.[18]

Conclusion

The rapid economic rise of China, as well as the socio-economic development strategically planned by the Chinese government, specifically the Chinese Communist Party’s socio-economic agenda has been directly fuelled and made possible by the country’s heavy reliance on the natural resource coal. Being the world’s leading coal consumer and importer, China’s use of the “dirty” and cheap fossil fuel specifically within the last 40 years during its economic reformation, has been able to lift both the standard of living of the nation, as well as allowed the nation to become a economic powerhouse in international economics and politics. Through government planned strategies and policies, the production of coal within the country has been able to increase drastically and productively due to large incentives provided to those who “contribute to the economic progress of the nation”. However, such rapid rates of economic progress also holds dire environmental and health consequences for both the nation, as well as the earth's climate as whole, as seen through the increase of Co2 emissions globally, as well as the country being the world’s number one contributor to greenhouse gas emissions. The Chinese government has however, made it a goal to become carbon neutral by 2060, and have become involved in renewable energy initiatives and projects in order to reduce its dependency on coal. Though leading the world in investments and renewable energy projects, the question must be asked if China is ready to reduce coal consumption for the sake of the global climate crisis by potentially slowing down economic progress.

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 Cey, Edwin. “Coal Formation.” Coal Formation - Energy Education, 4 Jan. 2019, https://energyeducation.ca/encyclopedia/Coal_formation.
  2. ↑ 2.0 2.1 2.2 Hays, Jeffrey. “Coal in China: Consumption, Production, Mining and Liquification.” Facts and Details, https://factsanddetails.com/china/cat13/sub85/item322.html.
  3. ↑ Dai, Shifeng, and Robert B. Finkelman. “Coal Geology in China: An Overview.” Coal Geology of China, 2020, pp. 1–4., https://doi.org/10.4324/9780429449369-1.
  4. ↑ 4.0 4.1 4.2 4.3 4.4 4.5 Li, Zengxue, et al. “The Geologic Settings of Chinese Coal Deposits.” Coal Geology of China, 2020, pp. 18–48., https://doi.org/10.4324/9780429449369-3.
  5. ↑ 5.0 5.1 5.2 5.3 Aden, Nathaniel T, et al. “Outlook and Challenges for Chinese Coal.” Outlook and Challenges for Chinese Coal (Technical Report) | OSTI.GOV, 20 June 2008,  
  6. ↑ “China Number of Employee: Coal Mining & Dressing.” CEIC, https://www.ceicdata.com/en/china/no-of-employee-by-industry-monthly/no-of-employee-coal-mining--dressing.
  7. ↑ He, Laura. “China Mined a Record Amount of Coal in 2021. It Might Produce Even More This Year | CNN Business.” CNN, Cable News Network, 19 Jan. 2022, https://www.cnn.com/2022/01/19/business/china-coal-production-record-intl-hnk/index.html.
  8. ↑ 8.0 8.1 “How China Shapes the World's Coal.” BBC Future, BBC, https://www.bbc.com/future/article/20211028-how-chinas-climate-decisions-affect-the-world.
  9. ↑ 9.0 9.1 “Analysis: What Does China's Coal Push Mean for Its Climate Goals?” Carbon Brief, 29 Mar. 2022, https://www.carbonbrief.org/analysis-what-does-chinas-coal-push-mean-for-its-climate-goals/.
  10. ↑ 10.0 10.1 10.2 10.3 10.4 10.5 10.6 Aden, Nathaniel T, et al. “Outlook and Challenges for Chinese Coal.” Outlook and Challenges for Chinese Coal (Technical Report) | OSTI.GOV, 20 June 2008, https://www.osti.gov/servlets/purl/1050632#:~:text=On%20a%20national%20level%2C%2054,%2Dbituminous%20and%2016%25%20lignite.&text=Shanxi%20province%20in%20Northern%20China,of%20China's%20indicated%20economic%20reserves.
  11. ↑ Shen, Shihua. “Coal-Mining Technology in China.” Energy, Pergamon, 11 Aug. 2003, https://www.sciencedirect.com/science/article/abs/pii/0360544286900502#:~:text=Therefore%2C%20about%2096%25%20of%20China's,about%2092%25%20of%20the%20total.
  12. ↑ “How China Shapes the World's Coal.” BBC Future, BBC, https://www.bbc.com/future/article/20211028-how-chinas-climate-decisions-affect-the-world.
  13. ↑ 13.0 13.1 13.2 13.3 “How Is China's Energy Footprint Changing?” ChinaPower Project, 17 Mar. 2022, https://chinapower.csis.org/energy-footprint/.
  14. ↑ Coal consumption by country. Worldometer. (n.d.). Retrieved June 24, 2022, from https://www.worldometers.info/coal/coal-consumption-by-country/
  15. ↑ 15.0 15.1 15.2 "China." Climate Action Tracker, climateactiontracker.org/countries/china/.
  16. ↑ 16.0 16.1 16.2 Layke, Jennifer. "China Faces 4 Big Risks if It Continues Building More Coal Plants." World Resources Institute, 2 Dec. 2019, www.wri.org/insights/china-faces-4-big-risks-if-it-continues-building-more-coal-plants#:~:text=2.,premature%20deaths%20in%202013%20alone.
  17. ↑ 17.0 17.1 17.2 17.3 “How Does Carbon Dioxide Increase Earth's Temperature?: Natural History Museum.” Home, https://www.nhm.ac.uk/discover/quick-questions/how-does-carbon-dioxide-increase-global-temperature.html#:~:text=Carbon%20dioxide%20(CO2)%20is,cold%20to%20support%20human%20life.
  18. ↑ 18.0 18.1 18.2 18.3 18.4 “How Is China's Energy Footprint Changing?” ChinaPower Project, 17 Mar. 2022, https://chinapower.csis.org/energy-footprint/#:~:text=As%20of%202020%2C%20coal%20made,significantly%20contributed%20to%20air%20pollution.
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