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Determinants of mine closures in a declining industry: The example of West German hard-coal mining after World War Two

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  • Jopp, Tobias A.

Abstract

We apply competing-risks-regression to explain mine closures in German hard coal mining over 1948–1978, the phase of most intense closure activity. The single-most important determinant was mine size, serving as proxy for fixed costs; being a large mine lengthened survival time. Labor productivity, in turn, did not inform closure decisions.

Suggested Citation

  • Jopp, Tobias A., 2023. "Determinants of mine closures in a declining industry: The example of West German hard-coal mining after World War Two," Economics Letters, Elsevier, vol. 226(C).
    • Handle: RePEc:eee:ecolet:v:226:y:2023:i:c:s0165176523001210
    DOI: 10.1016/j.econlet.2023.111096
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    References listed on IDEAS

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    1. Oei, Pao-Yu & Brauers, Hanna & Herpich, Philipp, 2020. "Lessons from Germany’s hard coal mining phase-out: policies and transition from 1950 to 2018," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 20(8), pages 963-979.
    2. Pao-Yu Oei & Hanna Brauers & Philipp Herpich, 2020. "Lessons from Germany’s hard coal mining phase-out: policies and transition from 1950 to 2018," Climate Policy, Taylor & Francis Journals, vol. 20(8), pages 963-979, September.
    3. Storchmann, Karl, 2005. "The rise and fall of German hard coal subsidies," Energy Policy, Elsevier, vol. 33(11), pages 1469-1492, July.
    4. Andrew Glyn & Stephen Machin, 1997. "Colliery Closures and the Decline of the UK Coal Industry," British Journal of Industrial Relations, London School of Economics, vol. 35(2), pages 197-214, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Closure; Hard coal; Competing risks; Germany; Mining;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N54 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: 1913-
    • Q35 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Hydrocarbon Resources

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