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Alabama Coal Association Study Emphasis Impact of Coal

Coal News - Published on Fri, 13 Dec 2019

Image Source: alreporter.com
Alabama Reporter said that a new academic study showed that coal has a tremendous positive impact on Alabama’s economy. Dr M Keivan Deravi of Economic Research Services Inc performed the study for the Alabama Coal Association. Dr Deravi said “Currently, the coal industry in Alabama directly employs more than 3,000 people and generates USD 370 million in annual payroll, for an average salary of more than USD 100,000 a year. Coal jobs are among the highest-paid positions in the state, around 1.6 times the average annual salary for workers in Alabama. The industry also generates approximately USD 69 million in taxes for the state.”

Dr. Deravi’s study examined the effects of each coal job on local economies. The study included the direct, indirect and induced effects of that economic activity. The direct effects are the economic impact of the regular operation of a company. The indirect effects include the impacts on suppliers, vendors, or associated materials industries. Induced effects are result from positive changes to an economy that happen when a worker’s spending enhances a local economy. Using those multipliers, the coal mining industry in Alabama has a total output impact of USD 2.9 billion a year , and a total economic impact of 15,000 full-time-equivalent jobs.

The state of Alabama holds about 4 billion tonnes of economically recoverable coal reserves. 13.5 million tonnes of coal were mined in Alabama just year. 85 percent of Alabama coal is metallurgical, which is used to make steel. Just 15 percent of Alabama’s coal reserves are thermal, which is burned to produce electricity. Alabama exports coal to Europe, South America, and Asia. Coal is Alabama’s largest export through the Port of Mobile.

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Posted By : Rabi Wangkhem on Fri, 13 Dec 2019
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