Economic Impact of Coal Industry

This result of this exercise is presented in Tables 15 thru 17 and Figure 2. According to our model, as presented in Table 15, the employment, output, and earnings impacts of the coal mining industry in Alabama are as follows: • Total output impact of $2.9 billion • Total earnings impact of $1.2 billion • Total employment impact of 15,000 FTE jobs Total Employment Impact - FTE 15,144 Total Payroll Impact $1,188,407,854 Total Economic Impact $2,935,576,106 Table 15: Economic Impact, 2018 Next, Table 16 shows the inter-industry interaction between all sectors of the state’s economy and the coal industry. According to our model, the largest beneficiaries of the economic impact of the coal industry are: • Mining and Suppliers • Service sector • Manufacturing sector • Transportation sector • Finance sector • Wholesale and Retail Trade Output Earning Employment Agriculture, forestry, and fisheries $12,684,017 $3,678,365 209 Mining $1,867,860,961 $882,012,750 6,229 Construction $26,382,754 $9,386,172 311 Manufacturing $225,521,814 $52,511,829 1,337 Transportation, communication, and utilities $205,607,908 $51,700,051 1,580 Wholesale and retail trade $129,985,802 $57,331,755 983 Finance, insurance, and real estate $195,460,695 $22,704,390 840 Services $272,072,155 $109,082,542 3,655 Total $2,935,576,106 $1,188,407,854 15,144 Table 16: Economic Impact of Coal Industry by Sector, 2018 Output Earning Employment Agriculture, forestry, and fisheries 0% 0% 1% Mining 64% 74% 41% Construction 1% 1% 2% Manufacturing 8% 4% 9% Transportation, communication, and utilities 7% 4% 10% Wholesale and retail trade 4% 5% 6% Finance, insurance, and real estate 7% 2% 6% Services 9% 9% 24% Total 100% 100% 100% Table 17: Sector Share of Economic Impact of Coal Industry, 2018 Finally, according to our model, in addition to $5.0 million in coal severance taxes in 2018, the coal industry is estimated to have generated an additional total of $69 million of taxes for the state coffers. These are the category of taxes that we can directly attribute to the operation and spending of this industry. Based on our estimate, the coal mining industry was responsible for $37 million in income taxes, $27 in sales and use taxes, and $5 million in utility taxes. These taxes are net of deduction and collection fees and are net contribution to the state’s Education Trust Fund. ECONOMIC IMPACT OF THE COAL INDUSTRY ON THE STATE OF ALABAMA 17

RkJQdWJsaXNoZXIy MjE2NDg3