Investigation of coal prices and mine productivity

Technical Report · Tue Sep 01 04:00:00 EDT 1981

OSTI ID:6306439

Baker, J G; Stevenson, W

This report examines the empirically established relationship between coal prices and mine productivity. Literature on this topic is critically reviewed, and a conceptual model using the neoclassical theory of the firm is developed. In addition, industry-structure arguments related to firm composition, producer concentration, and firm goals are explored. The conceptual models are tested using mine-level data from the 1970s. The major conclusion of the study is that the coal industry responds to price changes in a manner that is consistent with a competitive, dynamic industry, implying that the coal industry is utilizing limited productive resources (land, labor, capital, energy) in an efficient manner. Therefore, one would expect higher production costs and reduced productivity as the industry attempts to meet the increased demand for coal expressed in higher prices - hence, an inverse price-productivity relationship. Ways in which this relationship can be improved include reviewing regulations and enforcement procedures, improving labor relations, opening new low-cost reserves on public lands, and improving mining technology.

• Research Organization: Oak Ridge Associated Universities, Inc., TN (USA)
• DOE Contract Number: AC05-76OR00033
• OSTI ID: 6306439
• Report Number(s): ORAU-186; ON: DE82000235
• Country of Publication: United States
• Language: English

Related Subjects

01 COAL, LIGNITE, AND PEAT
015000* -- Coal
Lignite
& Peat-- Economic
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294001 -- Energy Planning & Policy-- Coal
CARBONACEOUS MATERIALS
COAL
COAL INDUSTRY
COAL MINERS
COAL MINING
COMPARATIVE EVALUATIONS
CORRELATIONS
DATA
ENERGY SOURCES
EXPERIMENTAL DATA
FOSSIL FUELS
FUELS
INDUSTRY
INFORMATION
LABOR
MATERIALS
MATHEMATICAL MODELS
MINERS
MINING
NUMERICAL DATA
PERSONNEL
PRICES
PRODUCTION
PRODUCTIVITY
SUPPLY AND DEMAND
THEORETICAL DATA