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

    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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