External effect of coalbed methane development on surface

Coalbed methane (CBM) is a type of clean energy and good chemical raw material, CBM exploitation and utilization can save energy, reduce emission and mine gas disaster, therefore, it is of a strong externality. But coal and CBM are co-existing in coal seam, exploitation of anyone will definitely affect the other. Through analysis of CBM development from surface, this paper discusses the negative externalities in geological exploration, coal mining geology, mine ventilation, integrated mining, gasification of coal and environment protection. The externality affects and involves the healthy development of the CBM industry. The positive externality can be strengthened by preferential subsidy, tax policy, rate relief and so on. The negative externality can be reduced by ousting some outdated production style, innovating production method, improving recovery rate. At the same time, part of negative externality can be transformed into the interior and win-win situation can be achieved through clarification of property rights and joint development.