OFR-09-94 Economic Impact Analysis Of The Coal Mining Industry In Pike County, KY

This U.S. Bureau of Mines report presents an evaluation of the coal mining industry's impact on the economy of Pike County, KY. A software package called IMPLAN was used to perform the analysis. The results of this study show that coal mining was the primary income producing industry in Pike County in 1990, accounting for about 46% of the county's Total Industry Output, and 21% of the total employment.. Coal production in that year amounted to 29.6 M mt (32.6 M st). Two alternate economic scenarios were developed to study the potential effects of changing coal market conditions on the county. Scenario A assumes market changes result in a coal production increase of 4.5 M mt/yr (5.0 M st/yr), and scenario B assumes a decrease of 4.5 M mt/yr (5.0 M st/yr). Scenario A would result in a 15.3% rise in the value of Pike County's Total Industry Output, adding a total of 1,663 jobs (+6.1%) in all sectors in the county. Scenario B would have the opposite effect, decreasing the Total Industry Output and employment by identical amounts. Such knowledge would allow local and regional officials to anticipate the economic and social impacts of shifts in coal production, and plan accordingly to mitigate impending changes.