The Impact of Coal Activity on Local Revenues for Elementary and Secondary Education in Appalachia

Abstract

Coal mining has a deep history in the Appalachian region, where some local economies have heavily relied on coal production. While coal employment in the region has generally been in a long-term decline, there is variation across counties, with coal employment still representing a large share of total employment for some counties. This paper explores how coal activity—measured by coal employment, coal employment as a share of total employment, coal production, and the number of coal mines—impacts locally provided funding for K-12 education. Using county-level data that spans from 1995 to 2016, results indicate that increases in coal activity have a positive and significant impact on local revenues per student though effects are modest. The findings are robust across different specifications. The implication is that declines in coal activity can hamper school funding, in turn affecting adequate investments in education that are essential for economic development.