The decision to ban coal mining in Illinois to reverse environmental damage is an ill-conceived notion with the potential to backfire. Though we’ve seen worldwide momentum towards moving away from thermal-coal energy production, coal mines are too crucial for the state of Illinois to lose. While coal exports are essential to the state economy, stopping them entirely will not negate the effects of climate change.
Illinois began mining coal in 1848. It is estimated that the state has 211 billion tons of coal deposits, which exceeds the oil reserves in Saudi Arabia when compared to the heating value. Most of the coal mined is exported, which provides much-needed revenue to the local administration. For decades, these mining areas have employed thousands of Americans.
Those advocating a ban on coal mining argue favor switching to clean energy from solar, wind, and gas-powered sources. However, the technology for harvesting energy from these sources is limited, making the transition to non-coal electricity production slow and difficult.
Shutting down coal power plants and relying on these forms of energy entirely may push electricity costs up by 20% in the next 15 years. This will increase the electricity bill of consumers and cause a ripple effect on businesses, which are sure to struggle to absorb additional costs while staying competitive.
Rising costs may force them to reduce spending, cut expenses on technological improvements, and lower the funding of business innovations. Ultimately, it is the consumers who have to pay more. This may discourage them from buying more goods and services.
As a result, the economy will suffer from both production and consumption blues. Thousands will become jobless. The impact may squeeze about $2.5 trillion from the national GDP in two decades.
Coal mines in Illinois provide much-needed revenue to the state and local administrations. They fund schools, hospitals, and charities, supplementing state efforts. A blanket ban may rob the state of a vital revenue source when Illinois is the sixth-worst performing state with 5-year annualized GDP and employment growth hitting 1% and -2%, respectively.
The shutting down of coal mines may force the state to lose about $1.5 billion per annum and reduce funding for development projects. Local administrations in at least five counties get substantial financial support from mining and allied activities. Halting the production of mines may adversely impact the livelihood and economic health of residents there.
Coal mining and support activities employ 20,000 residents in the state, including well-paying jobs for thousands. If coal mines are closed, jobs will be lost. Illinois will have to pay more in unemployment benefits while receiving less in tax revenue.
Illinois has already surpassed the 32% reduction in CO2 emission target by 2030, but the state coal mines have a minor role in environmental damage to begin with. Illinois produces only 6.5% of the total coal in the United States and consumes even less than that. With coal production and consumption rising elsewhere in the world, shutting down mines in Illinois won't bring many climate benefits.
Closure of coal mines will only force the state to suffer additional costs, job losses, reduced revenue, and general financial hardship, with little benefit to the environment.