What Explains the Increased Utilization of Powder River Basin Coal in Electric Power Generation?

Posted: 3 Sep 2008

See all articles by Shelby Gerking

Shelby Gerking

University of Central Florida - College of Business Administration - Department of Economics

Stephen F. Hamilton

California State Polytechnic University, San Luis Obispo

Multiple version iconThere are 2 versions of this paper

Date Written: 2008-01

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.

Suggested Citation

Gerking, Shelby and Hamilton, Stephen F., What Explains the Increased Utilization of Powder River Basin Coal in Electric Power Generation? (2008-01). American Journal of Agricultural Economics, Vol. 90, No. 4, pp. 933-950, November 2008, Available at SSRN: https://ssrn.com/abstract=1263046 or http://dx.doi.org/10.1111/j.1467-8276.2008.01147.x

Shelby Gerking

University of Central Florida - College of Business Administration - Department of Economics ( email )

Orlando, FL 32816-1400
United States

Stephen F. Hamilton

California State Polytechnic University, San Luis Obispo ( email )

San Luis Obispo, CA 93407
United States
805-756-2555 (Phone)

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