Local Socio-Economic Impacts from Coal Developments in the Southwest

Western communities view coal energy develop-ment plans with mixed emotions. The large positive income and employment effects associated with a heavy industry such as coal mining are often offset by negative environmental and sociological effects. Because of the growing pressures for development of strippable coal reserves in the West and the potential for net negative local socio-economic impacts, the Surface Environmental and Mining Program (SEAM) of the U.S. Forest Service funded a study to examine the impact of coal mining-gasification developments on the socio-economic structure of relatively isolated rural communities. [Gray et. al.] New Mexico is aptly suited as a location for such a study. The state ranks tenth among the 50 states in the size of unused coal resources. Most of the coal is concentrated in the Four Corners area in the northwestern part of the state. This area is occupied by a tri-ethnic culture of Indian, Spanish-American, and Anglo-American people, many of whom suffer persistent poverty, yet place a high value on environmental and social amenities. Coal development prospects, therefore, offer New Mexico a badly needed opportunity for economic development, but it is by no means clear that the net effect of this development will be positive. Raymond J. Supalla is an associate professor of agri-cultural economics, University ot Nebraska, formerly wit