Technical Note - Dynamic input-output model as applied to the investment planning of a coal power enterprise

A dynamic input-output model for a coal power enterprise that now includes four underground coal mines, three coal washing plants, a power plant and a railway transportation system was developed. The model is applied to analyze investment alternatives for long-term development, including the expansion of existing mines, the opening of new mines, the construction of new coal washing and power plants and the upgrading of the railway system. As a result, the optimal investment strategy with capital schedules and projected sector outputs is obtained. Also, the importance of the new power plant to the strategic development of the company is demonstrated. It is concluded that, without applying a dynamic input-output model, it would be much more difficult or impossible to conduct such a systematic and compete analysis.