August 16, 2021

The Transformation of Energy Sourcing

The world has globally recognized the need to support energy and environmental initiatives to ensure a sustainable and prosperous future. A promising method for sustainability has arisen: make vital reductions in carbon dioxide emissions. 

The world has taken the initiative to reduce emissions and make use of alternative energy sources. While this global shift to cleaner energy consumption benefits the environment, many communities that rely on coal as their primary energy source are suffering from the implications of this economic transition.  

The potential for economic growth is a motivating factor for regional governments to find more sustainable and renewable energy sources instead of coal and another nonrenewable. Rising benefits of clean energy usage and the increased costs of coal production, the coal industry is less profitable than it has ever been.  

The Environmental and Energy Study Institute speculates that “the changing economics of energy generation and the industry’s move toward automation have caused shocks to the coal workforce.” The Institute goes on to confirm that “2019 saw the second-highest number of coal-fired power plant closures and coal mining employment in the United States declined by 39 percent between 2009 and 2016”. With the labor force struggling to recover post-pandemic and coal profitability shrinking, regions whose revenues are heavily dependent on coal are suffering. Although the coal industry is losing value, there are still possible solutions that maintain regional growth and foster economic profitability. 

In our recent webinar discussion, “Shifts in the Energy Industry: An Analysis of Energy Impacts on State Economies,” REMI experts consider how a coal-dependent community will be impacted by the shifts to gas and solar energy. This presentation also analyzes the shifts in state taxation, energy prices, and other related economic variables due to renewable energy innovations before forecasting how state economies are impacted as the energy industry continues to transition away from fossil fuels using the REMI economic model. To learn more about this discussion and view the full presentation of this webinar, please click here

The learn more about The Environmental and Energy Study Institute, click here.