TITLE:
The Regional Economic Impacts of Coal Mining: A Case Study of Signal Peak Energy
AUTHORS:
Timothy J. Considine
KEYWORDS:
Coal, Regional, Economic, Exports, Fiscal
JOURNAL NAME:
Natural Resources,
Vol.15 No.8,
August
9,
2024
ABSTRACT: This paper quantifies the regional economic contributions of coal exports from the US using a case study of Signal Peak Energy in Montana. Two methods of estimating economic contributions are compared, contribution and impact analysis. The latter is adopted because the industry impact analysis is more accurate, especially since it is based upon accounting records from Signal Peak. Our estimates of regional economic and fiscal impacts do not vary significantly with the price of coal because we explicitly account for swings in royalty income. Our analysis finds that Signal Peak Energy supports 678 jobs, over $55 million in tax revenues, more than $90 million in royalties, $111.7 million in value added, and $62.3 million in labor income. Curtailing or halting Signal Peak’s coal production for environmental reasons as some environmental groups have argued would eliminate these economic contributions.