The Trump Administration has blamed the decline in America’s coal industry on a regulatory “war on coal.” Yet investor reaction to regulatory announcements doesn’t support that view. 

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The U.S. coal industry has declined dramatically over the past decade, with output from the nation’s coal mines falling 35% from their peak. Today, coal-fired power plants generate just over a quarter of the nation’s electricity and have been surpassed by natural gas plants as the top source for electric power. 

A variety of narratives have been put forth to explain coal’s decline. None has been more politically charged than the “war on coal” narrative, advanced by the Trump Administration, that places blame on a set of Obama-era federal policies to reduce the environmental impact of coal.

Guests Cary Coglianese, director of the Penn Program on Regulation and Dan Walters, Assistant Professor of Law at Penn State University, discuss new research that takes a close look at the impact of federal environmental regulation on the coal industry.  The research focuses on the reaction of investors to major regulatory announcements, and the extent to which federal energy and environmental policies have colored investors’ view of the future viability of the coal industry.  

Coglianese and Walter's report, Whither the Regulatory War on Coal? Scapegoats, Saviors and Stock Market Reactions, is available on the website of the Kleinman Center for Energy Policy.

Cary Coglianese is director of the Penn Program on Regulation at the University of Pennsylvania Law School. Dan Walters is an Assistant Professor of Law at Penn State University whose work focuses on energy and environmental law. Previously Dan was a Regulation Fellow at the Penn Program on Regulation.

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Teeming with Carbon Taxes https://kleinmanenergy.upenn.edu/blog/2019/08/12/teeming-carbon-taxes

As Clean Energy Surpasses Coal, U.S. Energy Transition Locks Into Place https://kleinmanenergy.upenn.edu/blog/2019/07/08/clean-energy-surpasses-coal-us-energy-transition-locks-place

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