June 20, 2009
Coal's costs outweigh benefits, WVU study finds
Chris Dorst
Among the costs of coal mining are the 724 miles of Appalachian streams buried by mountaintop removal operations like this one in Southern West Virginia.
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"It is not possible to determine what the economic and public health outcomes would be in these areas in the absence of mining," the study says. "However, given the literature on the impacts of social disparities and the previously documented problems of coal-dependent economies, such a casual link seems likely."

The new study builds on Hendryx's previous work that found excess premature deaths in coal counties compared to other counties in Appalachia.

That work did not definitively blame the coal industry for the excess deaths, but said possible explanations included exposure to coal byproducts such as slurry leaching into water supplies or air pollution effects from mining and coal processing. Further research is needed in those areas, Hendryx has said.

In the new study, Hendryx and Ahern cited a 2001 University of Kentucky study that valued the economic impact -- from direct, indirect and induced earnings -- of the coal industry in Appalachia at $6.5 billion a year. They adjusted that number for inflation, and added other benefits from various coal industry taxes.

The researchers also factored in the recent declines in coal industry employment.

"The number of coal miners in Appalachia declined from 122,102 to 53,509 between 1985 and 2005," the paper said. "This decline corresponded to increases in mechanized mining practices and the growth of surface mining, which requires fewer employees than underground mining per ton mined."

After these calculations, Hendryx and Ahern came up with a final annual regional economic gain of $8.1 billion.

Next, Hendryx and Ahern calculated a number of excess age-adjusted deaths in coal-mining areas, compared to non-coal areas of the region. The number varied from 3,975 to 10,923, depending on the years studied and comparison group. Then, they plugged in what they described as a low estimate of the value of life -- about $3.8 million -- and, using the highest number of excess deaths, got a figure for the cost of coal-related excess deaths of $41.8 billion a year.

The study is far from a complete cost-benefit analysis of the coal industry, the authors report. But, the things it leaves out, they say, are mostly costs that they haven't been able to completely account for yet.

"They do not consider reduced employment productivity resulting from medical illness, increased public expenditures for programs such as food stamps and Medicaid, reduced poverty values associated with mining activities, and the pros and the costs of natural resource destruction," the study says.

"Natural resources such as forests and streams have substantial economic value when they are left intact, and mining is highly destructive of these resources," the study says. "For example, Appalachian coal mining permanently buried 724 stream miles between 1985 and 2001 through mountaintop removal mining and subsequent valley fills, and will ultimately impact more than 1.4 million acres.

"Coal generates inexpensive electricity, but not as inexpensive as the price signals indicate because those prices do not include the costs to human health and productivity, and the costs of natural resource destruction."

Hendryx and Ahern conclude, "In response to this and other research showing the disadvantages of poor economic diversification, it seems prudent to examine how more diverse employment opportunities for the region could be developed as a means to reduce socio-economic and environmental disparities and thereby improve public health.

"Potential alternative employment opportunities include development of renewable energy from wind, solar, biofuels, geothermal, or hydropower sources; sustainable timber; small-scale agriculture; outdoor or culturally oriented tourism; technology; and ecosystem restoration," the study says.

"The need to develop alternative economies becomes even more important when we realize that coal reserves throughout most of Appalachia are projected to peak and then enter permanent decline in about 20 years."

Reach Ken Ward Jr. at kw...@wvgazette.com or 304-348-1702.

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Posted By: ejackson (10:59pm 03-31-2010)
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Over the last 25+ years I have been doing business across the globe. Most of my business has been it what I would call "extractive" industries--fisheries, mining, agriculture. The common elements are very similar; abundant local resources, lack of infrastructure/conversion technologies, and an elite minority controlling the wealth that results from extraction and marketing. Whether it is a country, state, or region--the symptoms are the same. The workers do not share in the wealth upside and the investors do not share in the health downside. The "fix is in", and the locals get left to deal with the consequences. The real dilemma remains--how do the people who happen to live in an area of immense resource benefit from that happy coincidence without carrying the water for the real beneficiaries?

Posted By: One Citizen (4:45pm 06-30-2009)
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Publicly funded campaign would make a huge difference in WV. http://www.publicampaign.org/

Posted By: FYI25203 (11:25am 06-24-2009)
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If coal is so good for West Virginia, then why do the counties with the most coal mining history have the lowest amounts of public water systems, of sanitary sewer systems, and other infrastructures, the poorest performing schools, and the lowest standards of living in this state?

Because WV Democrats on the local, state and federal level have sold out their constituents for 80 years.

Posted By: Frank (9:21am 06-24-2009)
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If coal is so good for West Virginia, then why do the counties with the most coal mining history have the lowest amounts of public water systems, of sanitary sewer systems, and other infrastructures, the poorest performing schools, and the lowest standards of living in this state?

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