Title

What explains the increased utilization of Powder River Basin coal in electric power generation?

Authors

Authors

S. Gerking;S. F. Hamilton

Comments

Authors: contact us about adding a copy of your work at STARS@ucf.edu

Abbreviated Journal Title

Am. J. Agr. Econ.

Keywords

environmental policy; freight rates; Powder River Basin coal; railroad; transportation costs; SULFUR-DIOXIDE EMISSIONS; ACID-RAIN PROGRAM; CLEAN-AIR ACT; MARKET; POWER; AIRLINE INDUSTRY; ENVIRONMENTAL-POLICY; DOMINANCE; MERGERS; Agricultural Economics & Policy; Economics

Abstract

This article examines possible explanations for increased utilization of Powder River Basin (PRB) coal in electric power generation that occurred over the last two decades. Did more stringent environmental policy motivate electric power plants to switch to less polluting fuels? Or, did greater use of PRB coal occur because relative price changes altered input markets in favor of this fuel. A key finding is that factors other than environmental policy such as the decline in railroad freight rates together with elastic demand by power plants were major contributors to the increased utilization of this fuel.

Journal Title

American Journal of Agricultural Economics

Volume

90

Issue/Number

4

Publication Date

1-1-2008

Document Type

Article

Language

English

First Page

933

Last Page

950

WOS Identifier

WOS:000259640900005

ISSN

0002-9092

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