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Economics of technological change in U.S. coal mines, 1951–1975

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  • Lakhani, Hyder G.

Abstract

This paper deals with theoretical and empirical analysis of the economics of technological change (TC) in coal mines for the period 1951–1975. It divides the coal mines into underground and surface mines. The TC in underground mines is that of replacement of conventional mining machines with continuous machines and longwall techniques, whereas that in the surface mines is the adoption of power shovels and draglines with larger sized buckets and dippers (Section 2). The theoretical model (Section 3) is a dynamic S-shaped curve called a Gompertz function, and the empirical estimates (Section 4) are given in terms of regression equations based on the theory. The estimates of growth rates of adoption are based on demand or output of coal, as well as on capital and labor costs in the mines. Policy implications (Section 5) for increased market penetration of the technologies refer to government planners in terms of measures to help reduce capital costs by means of tax credit etc. and to labor unions for reductions in labor costs by wage restraint.

Suggested Citation

  • Lakhani, Hyder G., 1980. "Economics of technological change in U.S. coal mines, 1951–1975," Energy, Elsevier, vol. 5(3), pages 217-230.
    • Handle: RePEc:eee:energy:v:5:y:1980:i:3:p:217-230
    DOI: 10.1016/0360-5442(80)90010-9
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    Cited by:

    1. Kuby, M. & Xie, Z., 2001. "The effect of restructuring on US coal mining labor productivity, 1980–1995," Energy, Elsevier, vol. 26(11), pages 1015-1030.

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