Coal Mining and the Resource Curse in the Eastern United States

29 Pages Posted: 27 Jan 2014 Last revised: 21 Aug 2015

See all articles by Stratford Douglas

Stratford Douglas

West Virginia University

Anne W. Walker

University of Colorado at Denver - College of Liberal Arts and Sciences

Date Written: August 18, 2015

Abstract

We measure the effect of coal resource sector dependence on long run income growth using the natural experiment of coal mining in 409 U.S. counties that are selected for homogeneity. Using a panel data set (1970-2010), we find a one standard deviation increase in resource dependence is associated with an estimated 0.6 percentage point drop in annual growth rates of per capita personal income. We also measure the extent to which the resource curse operates through disincentives to education, and find significant effects, but results indicate that this education channel explains only perhaps 25% of the curse.

Keywords: Natural Resources, Resource Curse, Appalachian region, Coal

JEL Classification: O18, Q32, Q33, R12

Suggested Citation

Douglas, Stratford Marion and Walker, Anne W., Coal Mining and the Resource Curse in the Eastern United States (August 18, 2015). Available at SSRN: https://ssrn.com/abstract=2385560 or http://dx.doi.org/10.2139/ssrn.2385560

Stratford Marion Douglas (Contact Author)

West Virginia University ( email )

Department of Economics
PO Box 6025
Morgantown, WV 26506
United States
304-293-7863 (Phone)
304-293-5652 (Fax)

Anne W. Walker

University of Colorado at Denver - College of Liberal Arts and Sciences ( email )

Denver, CO
United States
3033458915 (Phone)

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