Coal, the nation's most abundant fossil fuel and the only one that is exported, represents one of our most valuable natural resources. This study undertakes a thorough review of the economics of the Appalachian coal industry. It establishes, first of all, the international framework within which the American and the Appalachian coal industry function. It next examines the underlying principles that govern the production of and the demand for coal. This demand is influenced not only by price but also by world politics, the economic well-being of dozens of countries, government regulation, and the availability of fuel substitutes. Included are a comprehensive treatment of the regulation of the industry, the effects of coal utilization on air quality, land reclamation, safety, transport, and legislation pertaining to port use.

In conclusion, Harvey looks at the prospects for Appalachian coal, considering the impact of technologies such as fluidized bed combustion and coal-water slurry and the issue of energy policy and fuel alternatives. The picture that emerges is not unexpected -- an industry whose recovery and enduring health depend on resurgence of world and domestic economic activity, social and political stability, and government regulation.

The energy problem confronting the United States has focused attention on Kentucky's coal. Mr. Harvey here presents a comprehensive analysis of the coal industry in Kentucky, which consistently produces more than a fifth of the nation's coal. Because the coal industries in eastern and western Kentucky differ in many respects, Mr. Harvey has analyzed them separately. Although faced with competition from the foreign oil market, prospects for eastern Kentucky coal seem favorable because of its high quality and easy access to markets. The future of the coal industry in western Kentucky, Mr. Harvey asserts, depends upon implementation and enforcement of air-pollution standards, pending legislation regulating strip mining, fuel-import prices and policies, foreign currency fluctuations, and other factors. He foresees a moderate growth in the coal industry over the next five to ten years.