Interregional Structure of the U.S. Coal Economy

A multiperiod spatial equilibrium model of the national coal economy is developed to evaluate future interregional shifts in coal production and the investment requirements and sequencing for exploitation of a nonrenewable, variable quality resource. The effects of alternative sulfur dioxide emission standards and demand growth projections on the location and type of coal production, the transportation industry, and capital markets are examined. The study concludes that the coal industry can expand through 1990, especially in Appalachia and the West, to meet both greatly increased demand and restrictive air quality standards at moderately increased cost.