How will subsidizing coal conversion affect economic development in Kentucky?
KFTC believes this scheme will harm, not help, Kentucky’s efforts to develop a thriving, diverse economy, especially in distressed coalfield communities. The most optimistic projections estimate that Peabody Energy’s plan would create 375 permanent jobs with a $300 million subsidy from the state. That’s $800,000 per job, a per-job cost that is 20 times more than economic development deals offered to Toyota, Ford Motor Company and UPS! However, any analysis also needs to consider the fact that many of these new jobs would be in mining, a dangerous and polluting industry that extracts value from our state while pushing many costs onto the backs of local governments, residents and workers. There is little evidence that increased mining is a path to a more prosperous future. On the contrary, the counties in Kentucky that have produced the most coal over the past 100 years are among the poorest in the state. For examples, see these county profiles.
