ABSTRACT
Over the last decade, coal consumption in the United States has declined by about 50% from its peak level in 2007. This chapter explores how political economy factors determine the destiny of coal. Drawing on expert interviews, we identify affordability, reliability, climate mitigation, and employment as main strategic objectives of energy policy. Affordability, in particular, is the main driving force behind the decline of coal. While the Trump Administration had rollbacked federal regulations and climate policies, the coal industry is still in sharp decline, primarily due to lack of competitiveness comparing to alternative fuels. At the state level, even though the coal mining industry and coal-heavy utilities have successfully undermined some pro-climate policies, many states at the electricity demand centers have initiated various climate action plans to cut carbon emissions. Coal companies are adopting strategies to restructure business portfolios or seeking government bailouts for quick shutdown.
