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Li Zuojun and Zhang Fan, Research Institute of Resources and Environment Policies,the DRC

Research Report No 152, 2013

Abstract:

The economic slowdown poses challenges for the transformation of resource-based cities. Taking the city of Yulin in Shaanxi province as the object of study, this report finds difficulties with the transformation of resource-based cities, including overcapacity in the coal chemical industry, slowdown of growth in local government fiscal revenues, growing pressure for people’s livelihood and employment, the huge impact on private enterprises, the draining and lack of high-caliber elements, and local government’s weakening awareness for energy conservation and pollutant emissions under the pressure to stabilize growth.

The central government needs to pay attention to the transformation and development of resource-based cities amid the economic slump and utilize differentiated policies for different cities on the basis of surveys and scientific classification. It should also give priority to areas such as reform of the energy price formation system, design of fiscal and taxation policies, and reform in the government performance assessment system.