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Resilience, coal and the macroeconomy

Author

Listed:
  • Molyneaux, Lynette
  • Brown, Colin
  • Foster, John
  • Wagner, Liam

Abstract

There remains a debate about ‘oil and the macroeconomy’ despite James Hamilton’s claims. Manufacturing in 1970s US was, however, reliant on natural gas and electricity generated from coal, not oil. Whilst coal and electricity prices also rose in the 1970s their descent to pre-1974 levels was slower than the decline in oil prices. This research considers energy resilience during the 1970s. Spare capacity, natural gas and renewable energy are key resilience characteristics that predict improved manufacturing employment. The conclusion reached is that the rise in coal prices played a role, separate to oil price, in the macro-economies of US states.

Suggested Citation

  • Molyneaux, Lynette & Brown, Colin & Foster, John & Wagner, Liam, 2016. "Resilience, coal and the macroeconomy," MPRA Paper 74516, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:74516
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    File URL: https://mpra.ub.uni-muenchen.de/74516/1/MPRA_paper_74516.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Energy resilience; Energy security; Macroeconomics; Oil;

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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