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Job displacement costs of phasing out coal
Department of Economics, Royal Holloway, University of London, United Kingdom; IZA, Germany; Institute for Fiscal Studies, United Kingdom.
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
New Economics School, Russian Federation; Stavanger University, Norway.
Department of Economics, Simon Fraser University, Canada.
2024 (English)In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 236, article id 105167Article in journal (Refereed) Published
Abstract [en]

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: hourly 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.

Place, publisher, year, edition, pages
Elsevier, 2024. Vol. 236, article id 105167
Keywords [en]
Displacement, Earnings, Mining, Unemployment
National Category
Economics
Identifiers
URN: urn:nbn:se:umu:diva-227545DOI: 10.1016/j.jpubeco.2024.105167ISI: 001261870300001Scopus ID: 2-s2.0-85196864874OAI: oai:DiVA.org:umu-227545DiVA, id: diva2:1881669
Available from: 2024-07-03 Created: 2024-07-03 Last updated: 2025-04-24Bibliographically approved

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Simmons, Michael

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CiteExportLink to record
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Citation style
  • apa
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