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Show April 2002 Energy 25A i Research Identifies benefits of Utilizing the abundant coal reserves located within the United States to generate electricity creates economic em- $40 billion to $224 billion in increased household earnings. $800,000 to $6.4 million powerment for millions of additional American jobs. American businesses and According to the study, the ' families. working majority of the economic benA recent nationwide study efits derive from the extraorconducted by a team of econo- dinary interdependence of the mists at Pennsylvania State U.S. economy. Because all businesses rely University examined the imelectricon of electricity to produce and pact ity on the economies of state ' sell goods and services, the economic clout of the utility governments. The research study findings industry extends Car beyond d the generation and sale of elecdetermined that underincluding tricity. electricity, d electricity proground production, creates substantial financial benefits duces significant ripple effects to the overall economy of the that benefit the American United States. economy aa a whole, indicate Coal currently provides the the researchers. fiiel for generating more than The electricity one-ha- lf of the power con- study was conducted by Adam sumed in the U.S., according Rose and Bo Yang; economists to national statistics compiled at Penn State University. Professor Rose heads the by the U.S. Department of Energy. department of energy environThe Penn State research mental and mineral econom-- economists concluded that, in ics. Rose and research assisthe year 2010, coal production tant Yang used certain ecoand electricity generation nomic assumptions to present would be responsible for: the findings. In the first instance, the $163 billion to $659 billion in increased economic output study assumes varying levels coal-generat- ed coal-baae- Coal-baae- coal-fiiel- ed . of linkage between the coal-base- coal-bas- ed electricity generation industry and other sectors of the economy. The maximum versus minimum linkage variable measures the degree to which coal-bas- d electricity United States, the economic what we have known for a benefits are not evenly spread longtime, points out Stephen across the nation. Miller, president and chief exThe economic advantages ecutive officer of the Center states are for Energy and Economic Defor confirm the evident, study re- velopment. sults. Electricity from coal proMore surprising, however, vides economic empowerment are the economic benefits re- to local communities, small alized by states that do not businesses and working famiproduce coal, but use it as a lies," adds the energy and deprimary fiiel for electricity velopment centers chief executive officer. generation. The study concludes that According to Miller, the red will study provides an additional electricity sult in substantial economic level of details relative to the benefits for large and small ongoing national energy states dike, explain the Penn policy debate. State researchers. Despite electricity from For example, Illinois, Indi- coals low cost and improving ana, Ohio, Texas and Pennsyl- environmental performance, vania stand to gain from $21 some special interest groups billion to $32 billion in in- still believe we should abandon this abundant domestic creased economic output. Smaller states also share in energy resource, explains the the advantages provided by centers executive officer. The Rose-Yan- g electricity. study proFor example, New Hamp- vides 'additional empirical d electricshire, Connecticut, Oregon proof that and South Dakota are pro- ity is an essential element of jected to gain from $560 mil- a balanced energy portfolio lion to $720 million in ex- that increases energy security panded output, according to and provides economic emthe research findings. powerment for American famiThis new analysis proves lies," concludes Miller. coal-produci- ng ed electricity produces ripple effects that benefit other industries and sectors. ' The data are refined by taking into account the economic effects of using a higher-cos- t fiiel - in this case natural gas - as a substitute for low-cost coal. By factoring in the substitution prices, the study results show how coals economic ad- vantages are even greater when considering the costs of using a more expensive alternative fiiel to generate electricity, explain the Penn State analysts. The year 2010 was selected for modeling because regulatory programs aimed at displacing coal would need to be implemented over time, added the researchers. Because reliance on coal as a fiiel source for generating electricity varies from region eco-nom- ic to region throughout the coal-base- coal-generat- ed coal-base- i!!WRI14RGES!C V College of Eastern Utah Prehistoric Museum 4 blocks d Desert Wave Pool, open 7 blocks Carbon County Gub, public golf course 5 mi. Western Mining and Railroad Museum 7 mi. Indoor pool and whirlpool Free continental breakfast i Fax and photocopy service year-roun- 18-ho- le g?3 Onuagevllle, Utah 84537 jT Emery County & Carbon County Commercial & Industrial Building Specialists Supporting the Mining & Power Generating Industries mmnmnsHBnmHMBBn |