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The Effects of Fuel Prices, Environmental Regulations, and Other Factors on U.S. Coal Production, 2008-2016

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  • John Coglianese, Todd D. Gerarden, and James H. Stock

Abstract

We decompose the decline in coal production from 2008 to 2016 into the contributions of several sources. In particular, we estimate the effects of declining natural gas prices and the introduction of new environmental regulations along with several other factors, using both monthly state-level data and annual information on coal plant closings. We estimate that the declining price of natural gas relative to coal is responsible for 92 percent of the total decline in coal production over this period and that environmental regulations account for an additional six percent, with other factors making small and offsetting contributions.

Suggested Citation

  • John Coglianese, Todd D. Gerarden, and James H. Stock, 2020. "The Effects of Fuel Prices, Environmental Regulations, and Other Factors on U.S. Coal Production, 2008-2016," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
  • Handle: RePEc:aen:journl:ej41-1-gerarden
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    Citations

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    Cited by:

    1. Christopher R. Knittel & Konstantinos Metaxoglou & Anson Soderbery & André Trindade, 2022. "Exporting global warming? Coal trade and the shale gas boom," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(3), pages 1294-1333, August.
    2. Yin, Yuwei & Lam, Jasmine Siu Lee, 2022. "Impacts of energy transition on Liquefied Natural Gas shipping: A case study of China and its strategies," Transport Policy, Elsevier, vol. 115(C), pages 262-274.
    3. Sibande, Xolani & Demirer, Riza & Balcilar, Mehmet & Gupta, Rangan, 2023. "On the pricing effects of bitcoin mining in the fossil fuel market: The case of coal," Resources Policy, Elsevier, vol. 85(PB).
    4. Khan, Khalid & Su, Chi-Wei & Rehman, Ashfaq U., 2021. "Do multiple bubbles exist in coal price?," Resources Policy, Elsevier, vol. 73(C).
    5. Brett Watson & Ian Lange & Joshua Linn, 2023. "Coal demand, market forces, and U.S. coal mine closures," Economic Inquiry, Western Economic Association International, vol. 61(1), pages 35-57, January.
    6. Adele C. Morris & Noah Kaufman & Siddhi Doshi, 2020. "Revenue at Risk in Coal-Reliant Counties," NBER Chapters, in: Environmental and Energy Policy and the Economy, volume 2, pages 83-116, National Bureau of Economic Research, Inc.
    7. Yin, Yuwei & Lam, Jasmine Siu Lee, 2022. "Bottlenecks of LNG supply chain in energy transition: A case study of China using system dynamics simulation," Energy, Elsevier, vol. 250(C).
    8. Max Luke & Priyanshi Somani & Turner Cotterman & Dhruv Suri & Stephen J. Lee, 2020. "No COVID-19 Climate Silver Lining in the US Power Sector," Papers 2008.06660, arXiv.org, revised May 2021.
    9. Kacker, Kanishka & Lange, Ian, 2022. "Inter-regional coal mine competition in the US: Evidence from rail restrictions," Energy Economics, Elsevier, vol. 110(C).
    10. Adele Morris & Noah Kaufman & Siddhi Doshi, 2020. "Revenue at Risk in Coal-Reliant Counties," NBER Working Papers 27307, National Bureau of Economic Research, Inc.
    11. Muehlenbachs, Lucija & Staubli, Stefan & Chu, Ziyan, 2021. "The accident externality from trucking: Evidence from shale gas development," Regional Science and Urban Economics, Elsevier, vol. 88(C).

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    JEL classification:

    • F0 - International Economics - - General

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