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Resilience, coal and the macroeconomy

Molyneaux, Lynette and Brown, Colin and Foster, John and Wagner, Liam (2016): Resilience, coal and the macroeconomy.

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Abstract

There remains a debate about ‘oil and the macroeconomy’ despite James Hamilton’s claims. Manufacturing in 1970s US was, however, reliant on natural gas and electricity generated from coal, not oil. Whilst coal and electricity prices also rose in the 1970s their descent to pre-1974 levels was slower than the decline in oil prices. This research considers energy resilience during the 1970s. Spare capacity, natural gas and renewable energy are key resilience characteristics that predict improved manufacturing employment. The conclusion reached is that the rise in coal prices played a role, separate to oil price, in the macro-economies of US states.

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