The Competitiveness of Coal

A vital question for the future of Kentucky’s coal industry is its ability to compete with other coal-producing regions and other energy sources. Kentucky’s competitiveness in the coal industry declined in recent years, losing market share both in Kentucky and in surrounding states. In 1992, 82 percent of coal used in Kentucky was supplied by producers within the state; nearly ten years later, this number had fallen to 60 percent. Kentucky’s share of the Kentucky coal market declined as other states increased their shipments of coal to the state (see Figure 12). West Virginia, Colorado and Wyoming gained the most ground in Kentucky markets during this period.¹⁰

Figure 12: Shipments of Coal to Kentucky

Similarly, Kentucky coal producers have lost market share nationally since the 1990s. As Kentucky’s market share declined, other states made gains in these markets.¹¹

10. Kentucky Legislative Research Commission. 2004. The Competitiveness of Kentucky’s Coal Industry (Research Report No. 318). Frankfort, KY: p. 25.

11. Kentucky Legislative Research Commission. 2004. The Competitiveness of Kentucky’s Coal Industry (Research Report No. 318). Frankfort, KY: p. 10.