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The Exploitation of Coal as an Engine for Growth in Eastern Kentucky – An Input-Output Study

Historically, the economic problems of Appalachia have been closely linked to the problems of the coal industry, which, with its boom and bust cycles, often has intensified the conditions of poverty, unemployment, out-migration, and capital flight from the area. For more than a decade it has been national economic policy “to develop in Appalachia a self-sustaining economy capable of supporting the people with rising incomes, improving standards of living and increasing employment opportunities” [1, p. 64]. It has been widely hypothesized that this societal goal will be achieved through exogenous increases in demand for coal as the result of its substitution for other energy sources. Therefore a study was made of the impacts of the increased demand for coal on the economies of the 18 coal-producing counties in Appalachian Kentucky.