Environmental Liability, Insurance, and Market Structure in Coal Mining
Abstract
This paper examines a Pennsylvania policy reform that increased liability for coal mines with reclamation obligations. A 2001 change for surface mines was largely priced into existing reclamation insurance mechanisms, which exist to prevent mines from shirking their liabilities. We find the changes increased mine-level liability and idling (≈ 15% for median mines), led to declines in production, and did not change environmental performance directly for treated mines. However, we do find that these effects were driven largely by higher polluting mines. Major results are robust to both comparing bituminous and anthracite mines within Pennsylvania, as well as bituminous mines between Pennsylvania and Virginia.
Fields of Study & Subjects
Law
Economics
and Judicial Systems
Insurance and Financial Risk Management
Mining and Resource Management
Publication details
- Journal / source
- Journal of the Association of Environmental and Resource Economists
- Volume
- 13
- Issue
- 4
- Pages
- 1115–1151
- Publication date
- 12 February 2026
- Language
- EN