Job Displacement Costs of Phasing Out Coal

35 Pages Posted: 29 Sep 2022

See all articles by Juan Pablo Rud

Juan Pablo Rud

University of London, Royal Holloway College - Department of Economics

Michael Simmons

Umeå University

Gerhard Toews

University of Orléans

Fernando Aragon

Simon Fraser University

Abstract

The reduction of carbon emissions will require a rapid phasing out of coal and the displacement of millions of coal miners. How much could this energy transition cost mining workers? We use the dramatic collapse of the UK coal industry to estimate the long-term impact on displaced miners. We find evidence of substantial losses: wages fell by 40% and earnings fell by 80% to 90% one year after job loss. These losses are persistent and remain significantly depressed fifteen years later, amounting to present discounted value earnings losses of between four and six times the miners pre-displacement earnings.

Keywords: labor displacement, energy transition, coal mines

JEL Classification: labor, displacement, energy, transition, coal, mines

Suggested Citation

Rud, Juan Pablo and Simmons, Michael and Toews, Gerhard and Aragon, Fernando, Job Displacement Costs of Phasing Out Coal. IZA Discussion Paper No. 15581, Available at SSRN: https://ssrn.com/abstract=4232710 or http://dx.doi.org/10.2139/ssrn.4232710

Juan Pablo Rud (Contact Author)

University of London, Royal Holloway College - Department of Economics ( email )

Royal Holloway College
Egham
Surrey, Surrey TW20 0EX
United Kingdom

Michael Simmons

Umeå University

Samhallsvetarhuset, Plan 2
Umea University
Umeå, SE 901 87
Sweden

Gerhard Toews

University of Orléans

France

Fernando Aragon

Simon Fraser University

8888 University Drive
Burnaby, V5A1S6
Canada

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