Moving from Coal to Efficiency: An Analysis of State-Level Employment Impacts

Coal production in the Central Appalachian basin is projected to decline by 74 percent over the next decade, signaling a need for greater diversification in the region's economy. Can investment in energy efficiency programs compensate for projected job losses in coal-dependent regions? Selecting Kentucky as a case study, this research models the statewide employment impacts associated with energy efficiency programs. An economic impact assessment model known as IMPLAN is used to trace spending on energy efficiency programs and estimate the cumulative effects on employment. The goal of this research is to assess whether and to what extent energy efficiency programs can compensate for inevitable coal industry job losses. Analysis indicates that robust support for home weatherization and energy services can create nearly 4,000 direct job-years through 2017, reduce household expenses for poor populations, and offset regional declines in coal mining-related employment.