PHOENIX — Greenhouse gas regulations could cause declines in Wyoming's employment and revenues due to lowered demand for the coal the state produces, a University of Wyoming professor said recently.
The Wyoming Infrastructure Authority on Monday published a variety of presentations from its conference in Jackson Oct. 8-9, including one by Dr. Robert Godby on the economic impact of clean energy policy on Wyoming. Wyoming is by far the largest coal producer in the U.S., according to the U.S. Energy Information Administration, accounting for 39% of U.S. coal production in 2013.
Godby said in his presentation that coal production in the state has been declining, dipping from over 450 million short tons in 2008 to less than 400 million last year. He attributed the decline to natural gas and renewable energy, as well as stricter regulations aimed at reducing pollution.
Godby projects that Wyoming coal production will drop between 24% and 51% from 2012 levels, although his presentation noted that recent data supports a likelihood closer to the low end of that scale. The projections model variables such as the oil market and cost of natural gas, coal prices, and the cost of renewable energy as technology improves.
Energy tax revenue could drop 10% to 40% depending on the scenario with employment dropping up to 3% in some projections, the presentation showed. Godby concluded that society has decided that it will regulate carbon dioxide emissions and that "any CO2 policy will be hard on coal."
