Wind versus coal: Comparing the local economic impacts of energy resource development in Appalachia

Alan R. Collins, Evan Hansen and Michael Hendryx

Energy Policy, 2012, vol. 50, issue C, 551-561

Abstract: Two energy development scenarios were compared for the Coal River Mountain in Raleigh County, West Virginia: (1) mountaintop mining (MTM) of coal, and (2) wind energy plus underground mining of coal. Economic impact computations over the life of each energy development scenario were made on a county basis for output of goods and services, the number of jobs created, and local earnings. Externality costs were assigned monetary values for coal mining and subtracted from earnings. Premature mortality within the general population due to additional coal mining accounted for 96% of these external cost computations. The results showed that economic output over the life of each scenario was twice as high for MTM mining as wind energy plus underground coal mining. Over the short term, employment and earnings were higher for MTM mining, but towards the end of the scenario, cumulative employment and earnings became higher under scenario (2). When local externality costs were subtracted from local earnings, MTM coal production had an overall negative net social impact on the citizens of Raleigh County. The external costs of MTM coal production provide an explanation of the existence of a “resource curse” and the conflicting results of output versus income provide insights into why coal-producing counties are underdeveloped.

Keywords: Externality; Input–output; Mountaintop mining (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421512006519
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:50:y:2012:i:c:p:551-561

DOI: 10.1016/j.enpol.2012.08.001

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().