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The economic, fiscal, and workforce impacts of coal‐fired power plant closures in Appalachian Ohio

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  • G. Jason Jolley
  • Christelle Khalaf
  • Gilbert Michaud
  • Austin M. Sandler

Abstract

This study examines the economic, fiscal, and workforce impacts of two Dayton Power & Light (DP&L) coal‐fired power plant closures in Adams County, Ohio. The decommissioning of these facilities, and the closure of an associated training centre, will result in over 1,100 total lost jobs in the Appalachian region. A skillshed analysis revealed that displaced workers transitioning to emerging occupations with similar skill requirements will experience wage decreases. Decommissioned power plants in Ohio no longer pay tangible personal property (TPP) taxes, which will result in $8.5 million in lost tax revenue for local governments. These findings suggest that a multi‐pronged recovery effort will be required to assist this region, which has implications for similar communities in Appalachian Ohio dealing with coal plant closures. Este estudio examina los impactos económicos, fiscales y laborales del cierre de dos centrales térmicas de carbón de la empresa Dayton Power & Light (DP&L) en el condado de Adams del estado de Ohio. El desmantelamiento de estas instalaciones y el cierre de un centro de formación asociado provocarían la pérdida de más de 1100 puestos de trabajo en la región de los Apalaches. Un análisis de las cualificaciones reveló que los trabajadores desplazados, que se encuentran en transición hacia ocupaciones emergentes con requisitos de cualificaciones similares, experimentarían disminuciones salariales. Las centrales eléctricas cerradas en Ohio ya no pagan impuestos de propiedad personal tangible (TPP, por sus siglas en inglés), lo que resultará en una pérdida de ingresos fiscales de 8,5 millones de dólares estadounidenses para los gobiernos locales. Estos hallazgos sugieren que se requerirán esfuerzos de recuperación en diversas facetas para ayudar a esta región, lo que tiene implicaciones para comunidades similares en los Apalaches de Ohio involucradas en cierres de plantas de carbón. 本稿では、オハイオ州アダムズ郡のDayton Power & Light (DP&L)社の2つの石炭火力発電所の閉鎖の、経済、財政、労働人口への影響を検討する。この所施設および関連する研修センターの閉鎖は、最終的には合計で1,100を超えるアパラチア地域の雇用を失うことになる。スキル分析 (skillshed analysis)から、同様のスキルが必要な新興型の職業に就く離職者たちの給与は減額することが明らかとなる。オハイオ州の閉鎖した発電所は、有形動産 (tangible personal property: TPP)税を支払わなくなるため、地方政府は850万米ドルの税収を失うことになる。これらの知見から、この地域を助けるには 、多面的な復興努力が必要となることが示唆されるが、石炭火力発電所の閉鎖に対応しているオハイオ州のアパラチア地域内の同様のコミュニティに対しては有意義である。

Suggested Citation

  • G. Jason Jolley & Christelle Khalaf & Gilbert Michaud & Austin M. Sandler, 2019. "The economic, fiscal, and workforce impacts of coal‐fired power plant closures in Appalachian Ohio," Regional Science Policy & Practice, Wiley Blackwell, vol. 11(2), pages 403-422, June.
    • Handle: RePEc:bla:rgscpp:v:11:y:2019:i:2:p:403-422
    DOI: 10.1111/rsp3.12191
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    Cited by:

    1. Michieka, Nyakundi M. & Graziano, Marcello & Musso, Marta & Fouquet, Roger, 2022. "Energy transitions and labor market patterns in the U.S. coal industry," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 501-514.
    2. Daniel Raimi & Emily Grubert & Jake Higdon & Gilbert Metcalf & Sophie Pesek & Devyani Singh, 2023. "The Fiscal Implications of the US Transition Away from Fossil Fuels," Review of Environmental Economics and Policy, University of Chicago Press, vol. 17(2), pages 295-315.
    3. Nachatter Singh Garha, 2022. "From Decarbonization to Depopulation: An Emerging Challenge for the Carbon-Intensive Regions under the Energy Transition in Spain," Sustainability, MDPI, vol. 14(22), pages 1-22, November.
    4. Antonio Javier Prado-Domínguez & Fernando González-Laxe & Manuel Escourido-Calvo & Federico Martín-Bermúdez, 2021. "Initial Impact and Socioeconomic Compensation for the Closure of a Coal-Fired Power Plant in a Local Entity," Sustainability, MDPI, vol. 13(13), pages 1-17, July.
    5. Khalaf, Christelle & Michaud, Gilbert & Jolley, G. Jason, 2021. "How to Assess the Transferability of Worker Skills: A Hybrid Clustering Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 51(1), April.
    6. Pereira , Alfredo Marvão & Pereira, Rui Manuel, 2021. "On the Macroeconomic and Distributional Effects of the Regulated Closure of Coal-Operated Power Plants," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 46(4), pages 1-30, December.
    7. David M. Konisky & Sanya Carley, 2021. "What We Can Learn From The Green New Deal About The Importance Of Equity In National Climate Policy," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 40(3), pages 996-1002, June.
    8. Helmke-Long, Laura & Carley, Sanya & Konisky, David M., 2022. "Municipal government adaptive capacity programs for vulnerable populations during the U.S. energy transition," Energy Policy, Elsevier, vol. 167(C).
    9. David Kay & G. Jason Jolley, 2023. "Using input–output models to estimate sectoral effects of carbon tax policy: Applications of the NGFS scenarios," American Journal of Economics and Sociology, Wiley Blackwell, vol. 82(3), pages 187-222, May.

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