The Proposed Virginia Coal Slurry Pipeline And Its Employment Effects On The Railroad Industry

Abstract

This study uses estimated price elasticity of coal to compute the potential employment effects of a coal slurry pipeline.  Our conclusion is that a $5 per ton decrease in coal price due to a slurry pipeline will cause an approximately 6.74 million tons of reduction of shipment from railroads.  This will cost the railroad industry approximately 440 jobs.  The feasibility study of coal slurry is desirable because it produces new jobs and reduces prices for consumers.