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BONARDELLI, Mark A.

Analysing the impact of lost coal sales using the Illinois remi model - New York : Marcel Dekker, 1995

Illinois is the fifth largest producer of coal in the nation. The high BTU or heat content makes it attractive to burn in the generation of electricity. However, the amount of sulfur in Illinois coal has made it a target of environmental legislation. As utilities work to meet the requirements of the 1990 Clean Air Act, it is likely that demand for Illinois coal will decline, thereby leading to a reduction in coal output of the coal-producing counties of the state. The sub-state REMI model was used to determine the impacts of the dramatic reduction of coal demand on the Illinois economy. While coal mining represents a small percentage of total gross state product, to some counties in the state, coal mining represents a significant amount of the regional product and is a principal source of employment for these areas. The impacts of lost coal output on the economy of southern Illinois as predicted by the model were significant. This led to policy prescriptions to provide incentives to utilities to burn Illinois coal. While the short-term outlook for Illinois coal may appear bleak even with incentives, it is expected that Illinois can eventually be competitive in world coal markets due to the high BTU content of the coal, the extensive reserves, and the existence of an excellent transportation network.

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