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Show Energy Guide 53 March 2004 Research identifies benefits of Utilizing the abundant coal reserves located in Castle Valley and across the United States to generate electricity creates economic empowerment for millions of American businesses and working families. A nationwide study conducted by a team of economists at Pennsylvania State els of linkage between the electricity generation industry and other sectors of the American coal-base- d economy. ing into account the economic effects of using a higher-cos- t fuel - in this case natural gas - as a substitute for low-cocoal. By factoring in the substitution prices, the study re st The maximum versus minimum linkage variable electricity coal-base- d plained the Penn State economic analysts. The year 2010 was selected for modeling because regulatory programs aimed at displacing coal would need to be implemented tion. The research study results confrimed that the economic advantages for states are evident. coal-producin- g More surprising, however, are the economic benefits realized by states that do not produce coal, but use University examined the impact of electricity on the economies of state governments. The research study findd ings determined that coal-generat- the United Stares, the economic benefits are not evenly spread across the na- as a primary fuel for electricity generation, noted the it ed researchers. The study concluded that d electricity will result in substantial eco- coal-base- coal-base- electricity, including nomic benefits for large and small states alike, explained the Penn State researchers. underground production, creates substantial financial benefits to the overall U.S. For economy. example, Illinois, In- Coal continues to provide the fuel for generating more of the power than one-hal- f consumed in the nation, according to national statistics compiled by the U.S. Department of Energy. The Penn State University research economists con- diana, Ohio, Texas and Pennsylvania stand to gain from $21 billion to $32 billion in increased economic output. Smaller states also share in the advantages provided the year shire, Connecticut, Oregon and South Dakota are projected to gain from $560 million to $720 million in expanded output, according to the research findings. "This new analysis proves what we have known for a cluded that, in by For increased economic output. $40 billion to $224 bil- and chief executive officer of the Center for Energy and Economic Development. "Electricity from coal provides economic empowerment to local communities, small businesses and working families," adds the en- According to the Penn State study, the majority of the economic benefits derive from the extraordinary interdependence of the U.S. economy. ergy and development center's chief executive of- Because all businesses rely on electricity to produce and sell goods and services, the economic clout of the utility industry extends far beyond the generation and sale of electricity. ficer. According to Miller, the study provides an additional level of details relative to the ongoing national energy policy debate. "Despite electricity from coal's low cost and improving environmental performance, some special interest groups still believe we should abandon this abun- electricity produces significant ripple effects that benefit the American economy as a whole, indicate the researchers. coal-fuele- d electricity study was conducted by Adam Rose and Bo Yang, economists at Penn State University. Professor Rose heads the department of energy environmental and mineral economics. Rose and research assistant Yang used certain economic assumptions to present the findings. In the first instance, the study assumes varying lev Hamp- Stephen Miller, president $800,000 to $6.4 million additional American jobs. The example. New long time," pointed out increased household earnings. lion in Coal-base- d electric- d ity. 2010, coal production and electricity generation would be responsible for: $163 billion to $659 billion in coal-generate- The camera captures a unique bird's eye view of Power & Light's coal-fire- d Huntington plant, d Recent research study findings indicate coal-base- measures the degree to which coal-base- d electricity produces ripple effects that benefit other industries and sectors. The data are refined by tak h electricity, including underground production, ates substantial financial benefits to the overall economy of the United States. sults show how coal's economic advantages are even greater when considering the costs of using a more expensive alternative fuel to generate electricity, ex cre-Uta- during time, added the re- searchers. Because reliance on coal as a fuel source for generating electricity varies from region to region throughout dant domestic energy resource," pointed out the center's executive officer. "The Rose-Yan- g study pro- vides additional empirical elecproof that eleis an essential tricity ment of a balanced energy portfolio that increases energy security and provides economic empowerment for American families," concluded Miller. coal-base- d |