ABSTRACT
This chapter describes a programming model of the coal industry and discusses the implications of changing demand and the possible imposition of limits on sulfur emissions from fossil fuel electrical generating plants on coal production, new mine development and coal distribution patterns. Increased use of coal in the future raises a number of public policy issues, ranging from environmental impacts to leasing of the public domain. The multiperiod model includes a spatial allocation framework, linking coal transportation systems to various supply regions and electrical utility demand centers. The cost of barging coal is difficult to ascertain because many shipments are made on a nonregulated contract basis. Production costs were derived through a complex process to account for differences in mine size, terrain, method of extraction, coal depth, seam thickness and various other factors. Implementation of sulfur regulations reverses a significant proportion of the east to west flow of coal which has historically dominated the United States market.
