Regional economics: a subset of

Abstract

The focal point of the quality of life associated with the United States is a strong economy. Growth in the economy means growth in employment. The establishment of stringent environmental legislation is now a reality. However, those responsible for enacting environmental laws, as well intentioned as they may be, must strive to assess the socio-economic consequences of their actions so that the true net benefit of the environmental legislation is established. The main effort in this research centers around the analysis of how a particular resource, energy (i.e., energy in the form of electric power derived from strip-mined coal) is embedded in the economic growth of the Southwest. The basic econometric tool that has been utilized is a regional input-output model which evolved from a California-Arizona linked input-output model developed by H. O. Carter and D. Ireri. The decision space developed, which effectively acted as a mechanism for restricting coal-fired power availability in future years, was based on a schedule of electric energy capacity additions as delineated by the U.S. Department of Interior's Southwest Energy Study. The regional economic analysis, described in Chapter 5 of this dissertation, suggests there is a definite relationship between coal-fired power availability and regional economic growth in the Southwest. Furthermore, the estimates of incremental decreases in regional economic activity associated with certain levels of decreased coal-fired power development are of such a magnitude that one could characterize the relationship as very significant.