The Regional Economic Impacts of Coal Mining: A Case Study of Signal Peak Energy
- 1 School of Energy Resources, University of Wyoming, Laramie, USA
Abstract
This paper quantifies the regional economic contributions of coal exports from the US using a case study of Signal Peak Energy in Montana. Two methods of estimating economic contributions are compared, contribution and impact analysis. The latter is adopted because the industry impact analysis is more accurate, especially since it is based upon accounting records from Signal Peak. Our estimates of regional economic and fiscal impacts do not vary significantly with the price of coal because we explicitly account for swings in royalty income. Our analysis finds that Signal Peak Energy supports 678 jobs, over $55 million in tax revenues, more than $90 million in royalties, $111.7 million in value added, and $62.3 million in labor income. Curtailing or halting Signal Peak’s coal production for environmental reasons as some environmental groups have argued would eliminate these economic contributions.
- Considine, T.J. (2013) Powder River Basin Coal: Powering America. Natural Resources , 4, 514-533. https://doi.org/10.4236/nr.2013.48063
- Betz, M.R., Partridge, M.D., Farren, M. and Lobao, L. (2015) Coal Mining, Economic Development, and the Natural Resources Curse. Energy Economics , 50, 105-116. https://doi.org/10.1016/j.eneco.2015.04.005
- Dechezleprêtre, A. and Sato, M. (2017) The Impacts of Environmental Regulations on Competitiveness. Review of Environmental Economics and Policy , 11, 183-206. https://doi.org/10.1093/reep/rex013
- Energy Institute (2023) Statistical Review of World Energy. https://www.energyinst.org/statistical-review
- IMPLAN (2021) Economic Impact Analysis for Planning. https://implan.com
- Black, D., McKinnish, T. and Sanders, S. (2005) The Economic Impact of the Coal Boom and Bust. The Economic Journal , 115, 449-476. https://doi.org/10.1111/j.1468-0297.2005.00996.x
- Ivanova, G. and Rolfe, J. (2011) Using Input-Output Analysis to Estimate the Impact of a Coal Industry Expansion on Regional and Local Economies. Impact Assessment and Project Appraisal , 29, 277-288.
- Lobao, L., Zhou, M., Partridge, M. and Betz, M. (2016) Poverty, Place, and Coal Employment across Appalachia and the United States in a New Economic Era. Rural Sociology , 81, 343-386. https://doi.org/10.1111/ruso.12098
- Deaton, B.J. and Niman, E. (2011) An Empirical Examination of the Relationship between Mining Employment and Poverty in the Appalachian Region. Applied Economics , 44, 303-312. https://doi.org/10.1080/00036846.2010.505558
- Deller, S. (2014) Does Mining Influence Rural Economic Growth? Journal of Regional Analysis & Policy , 44, 36-48.
- Deller, S.C. and Schreiber, A. (2012) Mining and Community Economic Growth. Review of Regional Studies , 42. 121-141. https://doi.org/10.52324/001c.8126
- Douglas, S. and Walker, A. (2016) Coal Mining and the Resource Curse in the Eastern United States. Journal of Regional Science , 57, 568-590. https://doi.org/10.1111/jors.12310
- Hanson, B.R., Stankus, O.J. and Li, X. (2016) Signal Peak Energy Makes Longwall Recovery History. Engineering and Mining Journal , 1-5. https://www.e-mj.com/features/signal-peak-energy-makes-longwall-recovery-history/
- Miller, R.E. and Blair, P.D. (2009) Input-Output Analysis: Foundations and Extensions. Cambridge University Press.