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Inter-Regional Coal Mine Competition in the US: Evidence from Rail Restrictions

Author

Listed:
  • Kanishka Kacker

    (Indian Statistical Institute, Delhi)

  • Ian Lange

    (Colorado School of Mines)

Abstract

There has been much discussion recently in the U.S. press about the fate of coal mining and its employees, specifically in the Appalachian region. This analysis looks at how Appalachian coal mining responds to changes in coal production from the Western US, whose mines are generally on federal land. Specifically we look at how an unexpected reduction in the ability to move coal from Wyoming to Eastern power plants in 2005-06 impacted the rate of opening and closure of mines in Appalachia. The findings reveal that restrictions in coal from federal lands leads to a reduction in the rate of Appalachian coal mine closure but no impact on the rate of coal mine openings. The results imply inter-regional coal mine substitution possibilities and shed light on the tradeoffs inherent in policies to encourage production in one region.

Suggested Citation

  • Kanishka Kacker & Ian Lange, 2018. "Inter-Regional Coal Mine Competition in the US: Evidence from Rail Restrictions," Discussion Papers 18-01, Indian Statistical Institute, Delhi.
    • Handle: RePEc:alo:isipdp:18-01
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    References listed on IDEAS

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    More about this item

    Keywords

    Coal switching; Railroads; Supply Shock;
    All these keywords.

    JEL classification:

    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • Q35 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Hydrocarbon Resources

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