IDEAS home Printed from https://ideas.repec.org/p/rri/wpaper/2018rp05.html
   My bibliography  Save this paper

The Economic Impacts and Risks Associated with Electric Power Generation in Appalachia

Author

Listed:
  • Eric Bowen

    (John Chambers College of Business and Economics, Bureau of Business and Economic Research, West Virginia University)

  • Christiadi

    (John Chambers College of Business and Economics, Bureau of Business and Economic Research, West Virginia University)

  • Rebecca J. Davis

    (University of Tennessee-Knoxville)

  • John Deskins

    (John Chambers College of Business and Economics, Bureau of Business and Economic Research, West Virginia University)

  • Charles Simms

    (University of Tennessee-Knoxville)

Abstract

This report provides a detailed examination of the economic impacts of changes in electric power generation in Appalachia between 2005 and 2015. It finds that while coal represented around 74 percent of total electric generation in Appalachia in 2005, that percentage dropped to 53 percent in 2015. However, despite this decline, Appalachia remains more dependent on coal for electricity generation when compared with the rest of the country. This report also offers a risk factor analysis for coal-fired generation retirements and repowerings, and notes that coal prices have little influence on coal-fired power plant retirement decisions.

Suggested Citation

  • Eric Bowen & Christiadi & Rebecca J. Davis & John Deskins & Charles Simms, 2018. "The Economic Impacts and Risks Associated with Electric Power Generation in Appalachia," Working Papers Research Paper 2018-05, Regional Research Institute, West Virginia University.
    • Handle: RePEc:rri:wpaper:2018rp05
    as

    Download full text from publisher

    File URL: https://www.arc.gov/wp-content/uploads/2018/01/CIE4-ImpactsandRisksElectricPowerGeneration-2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. William J. Baumol & Robert D. Willig, 1981. "Fixed Costs, Sunk Costs, Entry Barriers, and Sustainability of Monopoly," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 96(3), pages 405-431.
    2. Ryan Kellogg, 2014. "The Effect of Uncertainty on Investment: Evidence from Texas Oil Drilling," American Economic Review, American Economic Association, vol. 104(6), pages 1698-1734, June.
    3. Marten, Alex L. & Moore, Christopher C., 2011. "An options based bioeconomic model for biological and chemical control of invasive species," Ecological Economics, Elsevier, vol. 70(11), pages 2050-2061, September.
    4. Hepbasli, Arif, 2008. "A key review on exergetic analysis and assessment of renewable energy resources for a sustainable future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(3), pages 593-661, April.
    5. Christopher R. Knittel & Konstantinos Metaxoglou & Andre Trindade, 2015. "Natural Gas Prices and Coal Displacement: Evidence from Electricity Markets," NBER Working Papers 21627, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Davis, Rebecca J. & Sims, Charles, 2016. "To Frack or Not to Frack: Option Value Analysis on the U.S. Natural Gas Market," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235642, Agricultural and Applied Economics Association.
    2. Mehak Shafiq & Muhammad Farooq & Waqas Javed & George Loumakis & Don McGlinchey, 2023. "Thermo-Hydraulic Performance Analysis of Fe 3 O 4 -Water Nanofluid-Based Flat-Plate Solar Collectors," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    3. Peer, Rebecca A.M. & Sanders, Kelly T., 2018. "The water consequences of a transitioning US power sector," Applied Energy, Elsevier, vol. 210(C), pages 613-622.
    4. LaPlue, Lawrence D., 2022. "Environmental consequences of natural gas wellhead pricing deregulation," Journal of Environmental Economics and Management, Elsevier, vol. 116(C).
    5. Boone, J., 2004. "Balance of Power," Other publications TiSEM d3f8cd4b-eaf0-4c1c-aed4-5, Tilburg University, School of Economics and Management.
    6. Doyle, Matthew & Fell, Harrison, 2018. "Fuel prices, restructuring, and natural gas plant operations," Resource and Energy Economics, Elsevier, vol. 52(C), pages 153-172.
    7. Alessandro Paolo Rigamonti & Giulio Greco & Mariarita Pierotti & Alessandro Capocchi, 2024. "Macroeconomic uncertainty and earnings management: evidence from commodity firms," Review of Quantitative Finance and Accounting, Springer, vol. 62(4), pages 1615-1649, May.
    8. Arblaster, Margaret & Zhang, Chrystal, 2020. "Liberalisation of airport air traffic control: A case study of Spain," Transport Policy, Elsevier, vol. 91(C), pages 38-47.
    9. Song, Zhiying & Ji, Jie & Cai, Jingyong & Zhao, Bin & Li, Zhaomeng, 2021. "Investigation on a direct-expansion solar-assisted heat pump with a novel hybrid compound parabolic concentrator/photovoltaic/fin evaporator," Applied Energy, Elsevier, vol. 299(C).
    10. Lips, Johannes, 2018. "Debt and the Oil Industry - Analysis on the Firm and Production Level," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181504, Verein für Socialpolitik / German Economic Association.
    11. Karl Pinno & Apostolos Serletis, 2013. "Oil Price Uncertainty and Industrial Production," The Energy Journal, , vol. 34(3), pages 191-216, July.
    12. Arezki, Rabah & Fetzer, Thiemo & Pisch, Frank, 2017. "On the comparative advantage of U.S. manufacturing: Evidence from the shale gas revolution," Journal of International Economics, Elsevier, vol. 107(C), pages 34-59.
    13. Rebecca J. Davis & J. Scott Holladay & Charles Sims, 2022. "Coal-Fired Power Plant Retirements in the United States," Environmental and Energy Policy and the Economy, University of Chicago Press, vol. 3(1), pages 4-36.
    14. Boone, Jan, 2004. "Balance of Power," CEPR Discussion Papers 4733, C.E.P.R. Discussion Papers.
    15. Josep-Maria Arauzo-Carod & Agustí Segarra-Blasco, 2005. "The Determinants of Entry are not Independent of Start-up Size: Some Evidence from Spanish Manufacturing," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 27(2), pages 147-165, September.
    16. Juaidi, Adel & Montoya, Francisco G. & Ibrik, Imad H. & Manzano-Agugliaro, Francisco, 2016. "An overview of renewable energy potential in Palestine," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 943-960.
    17. Marcus Asplund, 2000. "What Fraction of a Capital Investment is Sunk Costs?," Journal of Industrial Economics, Wiley Blackwell, vol. 48(3), pages 287-304, September.
    18. Alexandre Manoel Angelo da Silva, 2001. "Setor Aéreo Doméstico Brasileiro: uma Função Custo," Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting] 069, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    19. Backstrom, Jesse, 2019. "Strategic Reporting and the Effects of Water Use in Hydraulic Fracturing on Local Groundwater Levels in Texas," Center for Growth and Opportunity at Utah State University 307177, Center for Growth and Opportunity.
    20. Eling, Martin & Jia, Ruo, 2018. "Business failure, efficiency, and volatility: Evidence from the European insurance industry," International Review of Financial Analysis, Elsevier, vol. 59(C), pages 58-76.

    More about this item

    Keywords

    Regional Economics; Energy; Coal; Appalachia;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rri:wpaper:2018rp05. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Randall Jackson (email available below). General contact details of provider: https://edirc.repec.org/data/rrwvuus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.