Economic Impact of Coal Industry

Prepared for: The Alabama Coal Association Prepared By: M. Keivan Deravi, PhD Economic Research Services, Inc. Barbara Buchanan Economic Research Services, Inc. December 2019 This report attempts to estimate the economic impact of the coal industry on the state of Alabama. The variables of interest to be analyzed are employment, earnings, and final demand. This economic report is an estimate based on the sound theoretical foundation of the state’s economy and the most updated socioeconomic, demographic, retail, and general business climate information available. This study estimates possible changes to the regional economy predicated on an existing economic operation and does not consider the presence of any externalities, either positive or negative, in its computation. The premise of this analysis is that there will be no major events to change the short or long-term economic foundation of the region. In other words, we assume everything else will remain constant, as we run this exercise. Every attempt has been made to use the most recent information. The authors, however, do not assume responsibility for any changes or revisions that may have been made to the source data. M. Keivan Deravi, Ph.D. Economics Research Services, Inc. Office 334-247-1177 Cell 334- 318-7462 Barbara B. Buchanan Senior Vice President Economics Research Services, Inc. ECONOMIC IMPACT OF THE COAL INDUSTRY ON THE STATE OF ALABAMA 3