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Environmental benefits of renewable energy: Evidence from coal mining-induced deforestation and air pollution emissions

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  • Yang, Lin
  • Luo, Wenjie

Abstract

The global energy transition is accelerating the phase-out of fossil fuel combustion, yet its indirect environmental benefits through reduced fossil fuel extraction remain underexplored. This paper examines whether coal mining-induced deforestation and air pollution emissions are smaller in regions with greater renewable energy deployment in China. Leveraging high-resolution geographical data on permitted coal mining areas, along with satellite data on forest cover and PM2.5 emissions in the past two decades, we find that while coal mining reduces forest cover by 3.3%, integrating an additional 1% of local renewable energy into the electricity grid is associated with about 0.3% lower deforestation. As PM2.5 is transported downwind, ambient pollution and benefits of renewables have spillover to counties within 30 km of coal mines. Monetizing these benefits of avoided deforestation and air pollution, we estimate that the total value can exceed one billion US dollars. Our findings offer policy insights to promote energy transition with ecological preservation and environmental protection.

Suggested Citation

  • Yang, Lin & Luo, Wenjie, 2026. "Environmental benefits of renewable energy: Evidence from coal mining-induced deforestation and air pollution emissions," Journal of Environmental Economics and Management, Elsevier, vol. 139(C).
    • Handle: RePEc:eee:jeeman:v:139:y:2026:i:c:s0095069626000835
    DOI: 10.1016/j.jeem.2026.103363
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    Keywords

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    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels

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