ABSTRACT

Regarding town and village coal mines as the object of study, this article discusses the relationship of safety input expenses and net profit. The model deciding the safety input expenses is established. Conditions for safety production and economic profits and the impact of at-one-go investment on the safety input expense are analyzed. The data of town and village coalmines are used to verify the model and then the model is applied to analyze how government control will affect the safe production by limiting the amount of town and village coal mines. Finally, some suggestions are put forward accordingly. The authors hold that town and village coalmines should set out from their economic benefits first and have the motive to decrease the accident frequency. Therefore, giving a reasonable guidance to those mines is a good way of decreasing the accident rates. Whereas, closing them down directly in a short time may cause lots of accidents.