The federal moratorium on coal leases could cost the U.S. economy $650 billion over the next 10 years, according to a study released Thursday.
The American Action Forum, a center-right think tank, released its study “Examining the Economic Costs of the Administration’s Coal Moratorium” and argued the January decision to stop coal leasing on federal lands would be a huge detriment to the economy.
Federal coal leases have added $541 billion to the economy over the last 15 years and the coal industry contributes about $65.7 billion to the county’s gross domestic product, according to the report.
“This moratorium will have severe consequences for both the coal industry and the U.S. economy, including lost jobs, lost economic growth and lost revenue,” the study states. “It will also have a direct impact on electricity consumers as a forced switch to renewables and natural gas will raise rates.”
In January, the Department of Interior announced it would stop leasing federal lands for coal mining while it reviews its program for possible reforms. Last year, coal leasing on federal lands brought in $1.3 billion and are exempt from the pause.
According to the latest numbers, 308 federal coal leases existed in 2014, totaling 475,00 acres. That’s down 108 leases and 355,000 acres since 1990, the study says.
Facing competition from cheaper natural gas, coal miners have seen thousands of jobs lost in recent years. More than 50,000 coal jobs were lost between 2008 and 2012, and mining and logging employment was down 8,000 jobs in December alone, according to the Bureau of Labor Statistics.
Since Obama has come into office, 180,000 coal miners have lost their jobs, the study said.
The longer the pause in leasing for coal mining goes on, the more it will hurt coal miners, according to the study.
“This administration is instituting policy that prevents the coal industry from succeeding and hurts workers and wages,” the study says.
