Abstract There are many views of the reason why resource-consumption industries develop lowly and unsustainablely. However, most of the analysis fails to cover the influence of government behavior which lies behind the apparent causes. Under the influence of the government behavior, resource-consumption industry in China is undergoing fierce unsustainable development which has manifested itself in the following aspects: crowding-out effect in human capital, the adverse effects of poor dollar coins expulsion in resource-oriented enterprises, substitution effects, and the vicious circle structure. In order to solve these problems, transformation of concept is needed to reduce the unnecessary government interference. These can be achieved by sticking to the law of market allocation, establishing reasonable price mechanism for energy resources gradually, adopting accommodative fiscal and tax policies that facilitate the sustainable process and therefore leading the resource-oriented enterprises to the road of sustainable development.
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