Energy and the Environment: The Relationship Between Coal Production and the Environment in China

China, with the world’s largest population, is one of the most rapidly growing countries and the largest consumer of energy in the world. It possesses the second largest coal reserves globally and is the largest producer of coal in the world. Approximately 95% of the coal produced in China is from underground mining, which causes serious environmental and water quality problems. This paper investigates the relationship between coal production and the environment using a spatial econometric methods. The results indicate that electricity production and waste water have the greatest influence on coal production. Findings from this study are helpful to policy makers for designing environmental regulations in the coal production industry in China.