ECONOMIC DEVELOPMENT POTENTIAL OF 

CONVENTIONAL AND POTENTIAL ALTERNATIVE 

ENERGY SOURCES IN APPALACHIAN COUNTIES

Amy Glasmeier, Professor 

and 

Tom Bell, Consulting Geologist 

First Draft not to be quoted 

June 21, 2006 

Executive Summary 

Appalachia has significant potential to contribute to both national energy 

independence and to achieve regional import substitution in the energy 

sector. There are significant opportunities for regional and communityscaled industrial development, especially in the areas of bio-fuels. Major 

choices exist in the selection of a minimum scale of production for many 

of the new technologies and energy sources. Technologies in these fields 

are changing rapidly, thus planning for Appalachia’s energy future is 

dynamic. 

The creation of new energy supplies associated with renewable and nonrenewable energy sources is likely to generate substantial new 

employment. Appalachia’s industrial base already contributes major 

inputs to the wind, solar, biofuels, and other non-fossil fuel energy 

industries. Estimates of future growth in these sectors are significant and 

some research suggests thousands of new jobs will be created as these 

sectors expand in and outside of the region. 
Demand for non-renewable resources such as coal, natural gas, and oil is 

expected to expand assuming energy prices remain high. At the same 

time, job growth in the fossil fuel sector may be limited by the 

application of more productive mining practices at existing operations. 

There is some evidence that Appalachian coal may be at a disadvantage 

vis a vis western coal due to the higher sulfur content of Appalachian 

coal, lower production costs of western mines and reductions in the 

benefit of proximity to eastern power plants given that transportation 

costs are becoming an ever smaller share of the delivered cost of coal, 

especially in instances where imported coal can reach recipient power 

plants in reach of the Mississippi River. 

In contrast, renewable energy sources may emerge as an important 

source of regional and local employment and economic development. 

The mature ethanol, wind and solar industries are likely to expand as 

economies of scale, improvements in technology and the rising cost of 

fossil fuels make them more competitive. New industries can be 

expected to emerge as lignocellulose biorefinery technology is 

developed. Similarly, methane sources such as municipal waste water, 

landfill, livestock manure, and mine ventilation air within Appalachia 

represent as yet untapped sources of jobs and energy production. 

Carbon sequestration may prove to be an important strategy for reducing 

the Nation’s CO2 emissions. While there will be growth of employment in 

technical fields associated with identifying and developing alternative 

means of sequestering CO2, there may also be job losses associated with 

the decommissioning of aging production equipment, power plants, and 

other sources of CO2. Since sequestration technologies are in the 

research stage, estimates of impacts are impossible at present. 
Introduction 

The Nation faces a significant challenge: reduce dependence on foreign 

sources of energy while reducing our environmental impact associated 

with the energy we use. Currently America imports 62% of the oil used in 

the Nation at a cost of more than $250 billion last year (Department of 

Energy 2005). In 2002, fossil fuels, which are finite and nonrenewable, 

supplied 86% of the energy consumed in the United States. As Secretary 

of Energy Samuel Bodman suggests: 

 “With worldwide demand growing rapidly, and with concern about 

the environmental impact of greenhouse gases rising, the deployment of 

clean, reliable sources of energy is clearly in our national interest. “ 

Secretary of Energy Samuel W. Bodman (http://www.eren.doe.gov/) 

Today the Nation is at a crossroads. Growing global demand for fossil 

fuels, the perception of declining world wide petroleum reserves, and 

existing geopolitical instability in key energy producing nations is raising 

the level of uncertainty in global energy markets. Recent spikes in the 

price of oil reflect this uncertainty and may be the harbinger of a new era 

of higher energy costs in America and the world. Concurrently, 

Americans are beginning to accept that Greenhouse gas emissions have 

to be reduced to ensure that changes in climate are not further 

exacerbated by human impacts. How do we as a nation develop greater 

energy independence while reducing our environmental impact? 

What Is Energy Independence? HowDo We Achieve It? 

There are a variety of definitions of energy independence. The spectrum 

includes achievement of the necessary energy resources to maintain an 

agreed upon standard of living without disruption. A more encompassing 

definition emphasizes the development of a life style that uses energy 

resources in the most efficient and environmentally benign manner 

possible through a reduction in dependence on fossil fuels and a 
commensurate increase in the use of renewable energy resources. In this 

report, we adopt a working definition of energy independence which 

follows from the second set or principles. With that perspective in mind, 

this report examines the existence of energy resources in the 

Appalachian Region, the prospect of resource utilization across the 

region, and traces the direct effect of energy industry related economic 

activity among firms and industries across Appalachia. 

Basic Assumptions of this Report 

For the purposes of this report, we assume that the goal of federal, state 

and local policy is to reduce dependence on imported energy resources. 

We further assume that the US will pursue a strategy of energy 

independence through import substitution to achieve reductions in 

energy imports. As a recognized economic development strategy, 

“Import Substitution” focuses on developing the capacity to produce what 

otherwise would be imported from outside the region. Over time, import 

substitution can lead to the achievement of economies of scale in 

activities in which a region or nation chooses to specialize. This two step 

process can lead to the emergence of competitive advantages that are 

accompanied by the development of inter-industry linkages and further 

economic growth. The development of successful Asian economies 

including Japan, Korea, and Taiwan followed such a path to development 

starting in the 1950s. This report builds from the knowledge of this 

experience in considering the effects of a changing energy future for the 

United States. 

To pursue an import substitution strategy will require an increase in the 

production of both non and renewable energy sources that are 

domestically based. All of these activities will require resources, capital 

investment, new technology, and investments in human capital. Given 

this assumption, how do communities and states plan to take maximum 

advantage of such a national goal as energy independence? 

Our final assumption is that the Nation will pursue the goal of reducing 

American contributions to CO2 emissions. From scientific evidence we 
know that greenhouse gas emissions are linked to surface and ocean 

temperature increases, which in turn are thought to be correlated with 

increased climate variability. Corporations around the world are actively 

engaged in formulating plans and funding research to reduce CO2

emissions (Environmental Protection Agency [EPA] 2006). Recent reports 

in the national press underscore the growing significance of this issue in 

corporate strategic planning. Major national and international oil and gas 

companies are planning for a world in which fossil fuel consumption will 

utilize non-CO2 emitting production processes. To pursue this goal will 

require changing the mix of energy sources we produce and consume 

while enacting policies that lead to carbon sequestration in many 

different forms, those known and those still to be developed. 

This report considers what opportunities exist in the pursuit of energy 

independence and CO2 reductions for local, state, regional and national 

economies. It seeks to answer a number of questions, chief among them: 

How do we plan for an energy future in which the nation is less 

dependent on fossil fuels and more reliant on renewable energy sources? 

How do we determine what the economic impacts are of this future? And, 

how can communities contribute to this alternative energy future through 

the provision of goods, services, technology and a well-prepared 

workforce? 

Job Estimates Depend on Specifying a Future State of Energy 

Production 

This report provides a first cut at understanding the economic 

implications of an energy future that reduces the Nation’s dependence on 

imported resources. This type of analysis requires that we specify a state, 

condition or mix of energy sources we wish to utilize in the future in 

order to estimate what such a change would mean in terms of the 

demand for goods and services and in turn the job impacts of such a 

change. At the same time, to the extent possible, we need to account for 

not only the benefits associated with a strategy to improve energy 

independence, but we also must incorporate into our calculus the costs 

of reducing our carbon footprint. To that end, this paper consists of four 
parts. 

Outline of the Report 

• Part one explores a set of scenarios that are used by researchers to 

develop estimates of the job impact of various energy consumption 

and production profiles. This is necessary as we cannot calculate 

job impacts if we don’t first specify a change in the actions and 

practices associated with the production and consumption of 

different combinations of energy resources, both renewable and 

nonrenewable. Drawing on reports produced by a number of 

organizations, we discuss alternative futures based on different 

combinations of energy sources. As part of this discussion, we 

also briefly examine the issues associated with carbon capture and 

reductions in US output of CO2. 

• Part two examines a range of sectors that are either direct sources 

of energy or are inputs to the generation of energy--both 

conventional non-renewable resources and alternative or 

renewable resources. This second part consists of a compilation 

and display of secondary data that illustrates the spatial 

distribution of energy sources and resources, where possible 

characteristics about them, and when realistic, a geographic 

representation of the likelihood of resource development. In other 

words, we present maps that display a range estimates of where in 

Appalachia these sources and opportunities are located. 

• In part three, we look more closely at three alternative energy 

sectors in which extensive analysis of job generation potential has 

occurred: photovoltaic, wind energy, and biomass. This section 

examines renewable energy sources nationally, including: solar, 

wind, and biomass. We then move to the regional level and 

combine the findings from several studies to identify likely 

employment impacts in states that are members of the Appalachian 

region. As part of this discussion, we identify key firms in the 

states comprising the ARC that produce major manufactured 
components used in the production of alternative energies, 

particularly wind power. 

• In part four we identify nine sectors that account for a significant 

portion of key components in the alternative energy sectors of 

wind, solar, and biomass. We highlight these sectors and their 

employment in ARC states. We also examine the ARC share of total 

national industry employment in these sectors. We conclude this 

section with a summary and suggestions of areas of future 

research. 

Caveats 

This report is not exhaustive nor is every possible energy source explored 

in detail. With so many promising technologies still in the research stage, 

it is difficult if not impossible to offer concrete estimates of future job 

potential for all possible sources. 

In this report, estimates of job development potential are extremely 

rough and cannot be generalized. Greater accuracy regarding the job 

generation potential of these energy sources requires additional data and 

more systematic and sophisticated estimation techniques. The report also 

does not explore in detail the job growth potential of non-renewable 

energy sources. Job estimates associated with the further development of 

coal require more detailed data. This report offers general information 

about possible energy options for the Appalachian region. 

 

 

 
Part One: Job Implications of a 21st Century National 

Energy Portfolio: Methods of Estimating Job Impacts of 

the Growth in Non Renewable and Renewable Energy 

Sources and the Importance of Carbon Sequestration 

Methods Used to Estimate Job Impacts of the Expansion of the 

Alternative Energy Sector 

Since 2001, several major studies have been commissioned to examine 

alternative energy futures and the economic development potential of the 

expansion of renewable energy sectors, including wind, various forms of 

biomass and solar. In these studies, two widely used methods are 

employed to calculate the job impacts of a change in the nation’s energy 

budget: input-output analysis, which captures the direct, indirect and 

induced effects of investment in a sector, and analytical models that yield 

an estimate of the direct job generation from the expansion of a sector 

based on the implied labor time required to produce industry 

components. While the first method provides a comprehensive means of 

estimating total job impacts including potential job losses associated 

with shifts between sectors and increasing efficiencies provoked by 

changes within sectors, it is data and computationally intensive. In 

contrast, an analytical approach to estimation is a simple and transparent 

means of creating a rough estimate of job generation potential from the 

expansion of alternative energy industries. For this report, we use the 

simpler approach as a starting point and recommend that a more 

comprehensive assessment be considered that employs input-output 

analysis. 

For our purposes we illustrate the range of possibilities for growth in the 

number of jobs in separate industry segments, and investigate the 

prospect of sectoral growth in states that are currently the locations of 

alternative energy industry activity. These studies use as a baseline 

different energy scenarios that calculate the job impacts of future energy 
portfolios including higher and lower reliance on fossil fuels. From these 

differences in energy portfolios, economic impacts can be calculated and 

then translated first into material inputs, operations and process 

activities and ultimately into total job impacts. If we isolate different 

combinations of renewable energy sources for the generation of electrical 

energy we see that there are considerable differences across the different 

feed stock combinations. According to some estimates, biomass-related 

energy generation is predicted to create more long-term jobs compared 

with other renewable energy sources (Table 1). 

Table 1: Comparison of Estimated Employment Associated with Alternative 

Scenarios in the Production of Energy in the US 

Average employment associated with each 

scenario (jobs) 

Scenarios Construction, 

Manufacturing, 

Installation 

O&M and 

Fuel 

Processing 

Total 

Employment

20% Renewable Portfolio 

Standard (RPS) by 2020 

(85% biomass, 14% wind, 1% 

solar PV) 

52,533 188,317 240,850 

20% Renewable Portfolio 

Standard (RPS) by 2020 

(60% biomass, 37% wind, 3% 

solar PV) 

85,008 91,436 176,444 

20% Renewable Portfolio 

Standard (RPS) by 2020 

(40% biomass, 55% wind, 5% 

solar PV) 

111,879 76,139 185,018 

Fossil Fuels as Usual to 2020 

(50% Coal, 50% Natural Gas) 22,711 63,657 86,369 

20% Gas intensive by 2020 

(100% Natural Gas) 22,023 61,964 83,987 

Comparison of estimated employment created by meeting the equivalent of 20% of 

current US Electricity demand vian and expansion of fossil or renewables-based 

electricity generation. 
This section provides an overview of job potential in light of the 

expansion of energy sources non renewable and renewable, and then 

briefly examines job growth potential at the national level. A discussion 

of the importance of accounting for carbon sequestration follows. 

Job Growth and Fossil Fuels 

Appalachia’s tremendous reserves of fossil fuels, particularly coal, will be 

an important component of the nation’s future energy budget, but its 

exploitation presents significant environmental challenges. Recent data 

from the US Energy Information Administration (EIA) indicates that fossil 

fuels will continue to be a major component of the Nation’s energy 

budget. US consumption of fossil fuels consists of a mix of natural gas, 

coal and oil. If the price of oil continues to climb, the demand for coal will 

increase. At the same time, according the EIA, western coal used for the 

production of electricity has significantly advantages over Appalachian 

coal due to differences in production cost and sulfur content. In its 2006 

report and near term estimates, the EIA reports: 

“Appalachian coal production remains nearly flat in the reference 

case. Although producers in Central Appalachia are well situated 

geographically to supply coal to new generating capacity in the 

Southeast, the Appalachian basin has been mined extensively, and 

production costs have been increasing more rapidly than in other 

regions. The Eastern Interior coal basin (Illinois, Indiana, and 

western Kentucky), with extensive reserves of mid- and high-sulfur 

bituminous coals, does benefit from the new builds of coal-fired 

generating capacity in the Southeast. Nonetheless, in 2004, 

approximately 20 plants, many located east of the Mississippi 

River, used Powder River Basin coal for the first time. “ 

In terms of job growth, again the EIA reports, 

“Most jobs in the U.S. coal industry remain east of the Mississippi 

River, mainly in the Appalachian region (67 percent in 2004). Most 

coal production, however, occurs west of the Mississippi River (56 
percent in 2004), with the major share from the Powder River Basin. 

As coal demand increases, pressure to keep prices low will shift 

more production to mines with higher labor productivity. Large 

surface mines in the Powder River Basin take advantage of 

economies of scale, using large earth-moving equipment and 

combining adjacent mines to increase operating flexibility. 

Underground mines in the Northern Appalachia and Rocky 

Mountain supply regions use highly productive and increasingly 

automated longwall equipment to maximize production while 

reducing the number of miners required. Additionally, more costly 

Appalachian coal competes with lower cost imports from Latin 

America and Asia. http://www.eia.doe.gov/oiaf/aeo/coal.html” 

Overall job growth in fossil fuels is projected to be static or to decline 

over the next ten years (Table 2). This pattern reflects increasing 

efficiencies in the production of fossil fuels combined with a reduction in 

yields from domestic oil, coal, and gas fields. Together these industries 

are not expected to generate significant job gains over the next 20 years. 
Table 2. Net projected losses of jobs by fossil fuel and energy generation due 

to technological change and decreasing yield of natural resource deposits 

Sector Net Job Gain/Loss by 2020 

Overall for all sectors of the economy +1,314,000 

Coal Mining -23,900 

Oil and gas mining -61,400 

Oil refining -6,300 

Electric utilities -35,100 

Natural Gas utilities -26,200 

Net projected losses by sector of the economy in comparison to overall projected net 

gains. Source: Worldwide Fund for Nature. 

While fossil fuels will be a major component of Appalachia’s contribution 

to the nation’s future energy budget, environmental consequences of 

continued fossil fuel dependence will continue to be significant and 

therefore will represent only one of many elements required to achieve 

national energy independence. 

Job Growth and Renewable Energy 

The picture of growth in employment from changes in renewable energy 

industries is decidedly different from that of fossil fuels. Growing 

evidence suggests considerable job development potential from the 

expansion of alternative energy sectors. Kammen et al. (2004) 

summarized recent reports about job potential from alternative energy 

industry expansion, highlighting the significant growth potential of wind, 

solar, and biomass industries (Table 3). Several of these studies suggest 

that renewable energy creates more jobs than other sources of energy. 
Table 3. Renewable Energy Growth in the United States (MW) 

Technology 

Installed 

Capacity 

(Latest Year with 

Data) 

Previous Year 

Installed Capacity 

% Growth from 

Previous Year 

 Solar including PV 365 (1998) 334 9% 

 Wind 3,804 (2001) 2,554 49% 

 Biomass 7,367 (1998) 7,676 -4% 

 Geothermal 2,917 (1998) 2,853 2% 

Source: Wind data from correspondence with Kathy Belyee, American Wind 

Energy Association. All other data from US Energy Information Administration (EIA). 

Renewable Energy Annual 1999. Washington DC, March 2000. DOE/EIA-0603(99). 

Biomass data includes wood and wood waste, straw, digester gas, paper pallets, 

methane, waste alcohol, tires, fish oils, sludge waste and tall oil. It does not include 

municipal solid waste and landfill gas. 

According to some estimates, given their early stage in the product cycle, 

renewable energy sources are estimated to generate four times as many 

new jobs per megawatt of installed capacity as natural gas and 40% more 

jobs per dollar invested than coal. Thus the job development 

opportunities are potentially substantial. In these reports, the authors 

consider three stages in the job generation process: manufacturing, 

construction, and operations. To the extent possible, we also follow this 

strategy in reporting job generation potential for the constituent 

elements of the energy sector under consideration. 1

Carbon Sequestration 

A discussion of job impacts associated with the expansion of energy 

production, must take into account the job impacts of the need to reduce 

CO2 emissions and to capture and sequester that which is produced in 

 

1 Kammen et al. further report that alternative energy industry expansion 

generates more jobs per megawatt hour compared with conventional energy 

industry alternatives, due to increasing efficiencies in extractive industries 

combined with job losses associated with mergers and acquisitions
the consumption of fossil fuels and resulting outputs of other CO2

emitting processes. While the development of the technology to capture 

and sequester CO2 is still in it infancy, an ability to determine job impacts 

require that this by-product of energy production and consumption be 

taken into account alongside of alternative energy scenarios. 

The US will continue to utilize fossil fuels for the foreseeable future. In 

the process of mining and utilizing fossil fuels, CO2 is emitted. Like other 

countries the US is embarking on a path to reduce the nation’s CO2

output. To do so will require the development of new technologies and 

processes. The job impact of this development will be both positive and 

negative. Positive change will occur as new techniques and processes are 

implemented to capture and store CO2 emissions. Negative change will 

occur as high CO2 emitted processes and technologies are phased out in 

favor of low emission activities. At present, the majority of technologies 

being developed to help capture and sequester CO2 are in the 

development stage. Some are at an advanced stage of development while 

others are many years off and will require significant investment in 

research and technology to reach commercial scale. 

 

Sequestration is linked to the source point of the CO2 emissions. Almost 

one third of US emissions are derived from power generation and power 

plants. Present costs of sequestration are estimated at $100-300/ ton, a 

sum that must be reduced to $10/ton to be economical. 

Current research is focusing on identification of novel concepts to control 

emissions. These are expected to be cost effective taking into account 

total costs and impacts over the product cycle. This means production 

through disposal including social and environmental effects comparing 

local and global levels. 

In the medium term, projects are testing carbon capture ad re-use 

alongside existing power plants. Examples in the Netherlands 

demonstrate the efficacy of such an approach. Plans for the US include 

carbon capture and injection into existing oil fields to extract otherwise 
unrecoverable petroleum. 

At present, plans and strategies for CO2 capture are in their infancy and 

the payoff is five to seven years away. Thus, in contemplating the 

implementation of a new energy future, the costs of sequestration need 

to be taken into account in order to effectively estimate the job impact 

over time. 

Summary, Part 1 

A national energy portfolio that: a) reduces reliance on fossil fuels; b) 

maximizes the utilization of renewable sources; and c) reduces CO2 

emissions will yield a jobs profile significantly enhanced compared with 

current conditions. The contribution to job generation by different 

industries will depend on their level of maturity and their position in the 

product cycle. The fossil fuel industry is mature. Growth in demand is 

likely to lead to modest direct job generation, but is likely to precipitate 

process-innovation-related job generation over time. In contrast, 

widespread commercialization of renewable energy sources is in its 

infancy. Many renewable energy sources are just being developed and are 

thus at an early stage in the product cycle. Moderate levels of growth in 

demand will lead to the expansion of the existing supplier base and lead 

to the creation of complementary product lines. Significant new growth 

in demand will not only augment the existing base, but is likely to lead to 

the development of whole new products, an expansion of the supplier 

base attendant with this new productive capacity, and the growth of 

entirely new product-based innovations. Production bottlenecks and the 

search for efficiencies will further stimulate technological change leading 

to process innovations. 

The impact of actions to pursue carbon sequestration will depend on a 

host of serious short, medium and long term challenges. In the short run, 

solutions to the problems of sequestration will have direct positive job 

impacts. Over time, net job impact will reflect gains in the form of new 

industrial practices set against losses due to retirement of existing 

capacity. 
Part Two: Energy Supplies and their Probability of 

Utilization in the ARC region 

This portion of the report is a survey of the conventional and potential 

alternative energy sources of the 410 Appalachian counties. County 

potential for each energy resource is assessed in qualitative or semi 

quantitative terms. None of the values represented below should be used 

beyond the intent of this report which is to simply rank counties by 

potential. The qualitative measures are based on subjective break points 

in a measured value that is strongly correlated with the magnitude of the 

energy resource under consideration. Many of the underlying values are 

model results or estimates thus the errors are assumed to be high but 

systematic thus qualitative and semi-quantitative ranking of counties is 

justified. The term "resource" used throughout this page is the sum of an 

energy source but not it's recoverable value. The term "reserve" is used 

to represent recoverable volumes or masses of an energy commodity at 

prices and efficiencies that existed at the time of the reserve estimation. 

Petroleum 

Though U.S. commercial production of petroleum for fuel was initially in 

Appalachia (Pennsylvania), prospects for significantly increasing 

production in Appalachia are low. Production, reserves, and exploration 

activity as measured by wells drilled are summarized in the next three 

graphs. Reserves have increased in the last few years likely to be due to 

rising prices, not discovery of new sources of petroleum. 
 

 
 

Source: Petroleum Technology Transfer Council Appalachian Region Oil and Gas Data

Natural Gas 

Natural gas exploration in Appalachia has increased recently in response 

to rising natural gas prices and a ready local market. Direct employment 

associated with increased exploration includes engineering, road 

construction, drilling, and oil field services. Indirect employment 

associated with exploration includes housing, meals, and fuel for 

equipment. New production inputs are primarily associated with 

constructing production wells, pipelines, pipeline roads, and compressor 

stations. Long term employment is limited to gas field service and 

maintenance. 

Historic natural gas production, reserves, and exploration activity are 

summarized in the following three graphs. 
 

 
 

Source: Petroleum Technology Transfer Council Appalachian Region Oil and Gas Data

A qualitative assessment of natural gas potential is shown in the 

following map. Each county was categorized by the average reserve size 

class as defined by the Energy Information Administration within each 

county. 

 

Natural Gas Potential Based on EIA Reserve Estimation for 2001 

Code Potential Average Reservoir 

Size Class 

Gas Volume Range for Class 

(million cubic feet) 

 V. Low 0 and 1 0 -10 

 Low 2 10.1-100 

 Mod 3 100.1-1,000 

 High 4 1,000.1-10,000 

 V. High 5 10,000.1 - 100,000 
Steam Coal 

Coal has been Appalachia's traditional energy product. Fourteen 

hundred and seventy five mines produced 3.79 million tons of steam coal 

in 2003 (most recent year statistics are available) and employed nearly 

47,000 people. The cumulative value of all coal produced in Appalachian 

counties priced as bituminous coal FOB was $10.7 billion dollars (current 
2005 dollars). Rising prices and increased productivity through 

automation have stimulated production, redevelopment of closed mines, 

and initiation of new mines. 

The next three maps summarize mines, value and employment for 2003 

(most recent data available) by county. 

Source: Energy Information Agency

Coalbed Methane 

Significant resources of coal that are not economic to mine exist in 

Appalachian counties and may represent a source of energy via in situ 

coal gasification. Additionally, methane constitutes a small but 

potentially useful fraction of the ventilation stream from operating mines. 
Underground Coal Gasification 

Underground coal gasification was developed by the Soviets in the 

1930's, tried in the United Kingdom in the 1950s, evaluated in the US in 

the 1970s, and evaluated in Europe during the 1990s. Active research 

programs exist in all the major coal producing countries. Simple in 

theory but difficult to put in practice, coal gasification requires injection 

wells and extraction wells in a coal seam. Controlling the reaction of in 

situ coal to gas, enhancing coal bed permeability, and maintaining 

formation pressure are all major challenges. Recent developments in 

directional (horizontal) drilling may be changing the feasibility of this 

technology. 

Little literature is available at US websites and a search of the EIA and 

NREL websites turned up few relevant references. Leaders in the field 

appear to be the United Kingdom and Australia. 

Ventilation Air Methane 

Underground coal mines must circulate fresh air to remove flammable 

and toxic gases released from coal seams during the mining process. As 

the ventilation air passes through the mine it accumulates carbon dioxide 

and methane before it is exhausted to the atmosphere. Ventilation air 

methane (VAM) is the single largest source of industrial methane put in 

the atmosphere by the United States. 

 

VAM can be utilized as a heat source or to generate electrical power 

using emerging VAM oxidation technologies. EPA has estimated that 

VAM based methane emissions from US underground coal mines were on 

the order of 2.5 billion cubic meters in 2000. The Appalachian basin 

accounted for 73% of all national underground production in 2000 thus 

approximately 1.8 billion cubic meters of methane was potentially 

available for energy production in 2000 in the Appalachian Region. This 

represents a resource of 175 megawatts per year. The approximate 

distribution of this resource, coal production by Appalachian county was 

converted to a VAM resource in the following map. 
Wind 

The Appalachian ridges and Lake Erie shoreline constitute a potential 

economic zone for generating electricity with wind power. Direct 

employment is heavily weighted to the construction phase as towers, 

turbines, power lines, and substations are constructed. Long term 

employment is limited to maintenance. 

The map below is a qualitative assessment of the wind resources of 

Appalachian counties based on state level evaluations assembled by the 
Department of Energy. Each county was assigned a value based on the 

presence and areal coverage of class 4 and above wind speed at 50 

meters above the ground. 
Wind Potential From DOE 

Code Potential Max Wind Class Wind Speed at 50 m (mph) 

no data - - 

Low <4 <15.7 

Mod 4 - 5 16.8 - 17.9 

High >5 >17.9 

 

Lignocellulose 

Lignocellulose is a promising feedstock for fuel grade ethanol production. 

Sources of lignocellulose include wood chips, corn stover (chopped corn 

stalks), and "bioenergy crops" such as switchgrass and fast growing trees. 

The National Renewable Energy Laboratory has produced an extensive 

analysis of current and near term technologies for developing renewable 

energy sources including ethanol production from lignocellulose. The 

following analysis of the lignocellulose potential of Appalachian counties 

is based on a modified inventory of lignocellulose sources by county and 

a pre-feasibility study of a model biorefinery for ethanol production both 

produced by NREL. 

 

The inventory of lignocellulose resources by county is composed of 

feedstocks from crop residues, forest residues, urban waste wood, mill 

residues, and dedicated energy crops. The NREL inventory included 

switchgrass as its dedicated energy crop and only calculated the amount 

that could be grown on reclaimed mine land and acreage set aside in the 

CWRP program. This value has been deleted and a separate value for 

switchgrass production substituted. The new value is calculated by using 

the unharvested cropland acreage reported in the 2002 Census of 

Agriculture multiplied by 5 tonnes/acre/year. This new assumption is 

justified on the basis of switchgrass as viable in the normal crop rotation 

cycle and the potential for an incentive program to grow switchgrass on 

otherwise uncultivated cropland. 
Lignocellulose cultivation and local biorefineries to convert it to ethanol 

represent the single biggest potential gain in local employment and 

retention of revenue of all energy industries considered in this evaluation. 

This industry, like coal, depends upon the local labor force to produce 

the feedstock and if the biorefineries are local, supply the labor force to 

operate them as well. Local input may account for as much as 60% of the 

total cost of production. 

The classification of counties is based on the total tonnage of biomass 

from all sources and the threshold capacity for a 25 million gallon/year 

ethanol biorefinery with minimum feedstock input of ~300,000 tons per 

year presented in the pre-feasibility study produced by NREL. Counties 

with sufficient lignocellulose potential to support a 25 million gallon per 

year biorefinery are rated "very high". 

Lignocellulose Based Ethanol Potential Based on NREL 

Code Potential Tonnes/yr Lignocellulose production 

V. Low <50,000 

Low 50,000 - 100,000 

Mod 100,000 - 200,000 

High 200,000 - 300,000 

V. High >300,000 
Biomass Methane 

Biomass feedstocks can also be used to produce methane, a significant 

greenhouse gas, but also a potential source of energy. NREL has 

estimated the annual methane production by county from landfills, 

wastewater treatment, and livestock manure. Units used in their analysis 

are tonnes/year methane. This was converted to megawatts. Each 

methane feedstock (waste water, manure, and landfill) requires a separate 
extraction technology though conversion to electricity or direct thermal 

use is consistent over each of the three sources. 

Livestock Manure 

Livestock manure can be used to produce electricity or heat by anaerobic 

fermentation. Small scale conversion units are being developed for 

family farms and larger industrial scale plants for factory farms and 

feedlots. Cost per animal unit remains high for small scale operations 

and safety risks handling combustible gas may be significant (Source: 

Purdue Univ). 
Wastewater Treatment 

Wastewater treatment plants can produce valuable methane from solid 

waste by anaerobic fermentation. Methane can be used to produce 

electricity or burned directly for thermal energy. The wastewater 

resource was converted from tonnes to megawatts to rank the 

Appalachian counties mapped. 
Landfill 

Landfill based methane can be converted to electrical energy by several 

means or used onsite for thermal energy. The EPA lists 326 electrical 

generation projects proposed or operational nationally as of 2004 and 92 

direct use projects proposed or operational. Approximately 65% of the 

electrical generation projects underway nationally use methane to directly 

power reciprocating engines (internal combustion engine) to drive a 
generator. Gas fired turbines comprise approximately 13% of current 

electrical generation followed by microturbines (~6%), steam boilers 

(~5%), cogeneration (~4%), and other means. 

Direct use employs the heat of burning methane for onsite industrial use. 

The EPA estimates that each megawatt of landfill energy during the 

construction phase employs 23 people and generates $1 million in wages 

and salaries. 

Source: EPA

Only a very small portion of landfill methane in Appalachian counties is 

currently being utilized. 

Operational Landfill Electrical Generation 

State County Capacity (megawatts) 

PA Lackawanna 6.6 

PA Erie 6.1 

PA Lycoming 13 

PA Bradford 0.8 

KY Greenup 3.2 

KY Laurel 4.0 

TN Anderson 3.2 

TN Hamilton 1.0 

NC Forsyth 4.6 

NY Broome 1.2 

Source: EPA
Solar 

Conversion of solar radiation to electricity by several technologies depends 

upon factors of scale, angle of incident solar radiation, temperature, cloud 

cover, and atmospheric clarity. Small scale conversion utilizing fixed 

orientation flat panel photovoltaic cells serves remote equipment 

installations, homes and commercial buildings. Solar conversion linked to 

the power grid utilizes more capital intensive technologies and/or larger 
operating scales such as concentrating solar generation. 

Photovoltaics (PV) 

The following map utilizes a geographic-climatologic model of average 

potential solar energy developed by NREL for evaluating PV cells. 

Concentrating Solar Systems 

Concentrating solar systems including trough, concentrating dish, and 
motorized photovoltaic array technologies are necessarily more capital 

intensive and represent a potential type of commercial power generation 

in Appalachian counties. The following map displays the solar insolation 

values available to concentrating solar technologies. Appalachian 

counties in general are far less attractive than counties in the western 

United States where solar resources are greater and land costs are lower. 
Part Three: Job Potential of Alternative Energy Futures 

In this section we look closely at three sectors and their job growth 

potential nationally. Drawing on other studies, the starting point of 

discussions of growth in these sectors assumes an expansion of energy 

production using alternative sources. Next, the increase in energy output 

using alternative sources is translated into growth in demand for key 

hardware components used in the production of energy (converted into 

megawatts) for the respective sources: Wind, Solar and biomass. In 

addition, estimates are made of the number of workers required to 

construct new energy capacity in the sectors and to operate production 

facilities once new capacity is added. In turn this increase in demand for 

inputs and labor is then translated into person hours and ultimately into 

jobs per increase in megawatt generation. 

In this assessment we report the general findings of studies produced by 

various groups, especially the Renewable Energy Policy Project, a 

consulting firm in Washington, D.C. These studies provide estimates of 

the number of new jobs that would be created for a finite level of new 

energy generated employing alternative energy technologies. Given the 

number of assumptions that have to be made in order to provide an 

accurate estimate of job generation potential in the ARC region due to an 

expansion of energy generation from Solar, Wind and biofuels, we do not 

construct such a computation here. This activity should form the basis of 

a more detailed research investigation that takes into account the 

location of firms producing components for these industries and their 

presence in the ARC region and the potential for installation of productive 

capacity of these renewable energy sources. 

At a gross level, in a 2006 study completed for the state of Wisconsin, 

which compares the national employment impact of an increase in energy 

production of 74,000 MW by the most prevalent alternative energy 

sources, the yield was roughly 180,000 gross jobs in the top ten states. 

Of these, Ohio, New York, Pennsylvania and North Carolina ranked in the 
top ten (Table 4). Almost 70,000 of the 180,000 gross jobs anticipated 

to be generated by the expansion of these sectors is estimated to occur 

in Appalachian states. This is more than 40 percent of the gross jobs 

assumed to occur in conjunction with growth of these three sectors.* 

Thus growth in demand for energy generated using renewable sources 

has potential to generate significant new jobs in ARC states. 

Table 4: Jobs and Investment for 74,000 MW Renewable Energy 

Development 

Location 

# of 

Firms 

New 

Jobs 

(Wind) 

New 

Jobs 

(Solar) 

New Jobs 

(Geothermal) New Jobs 

(Biomass) 

New Jobs

(Total) 

CA 5,409 12,830 19,558 3,387 2,481 38,256 

TX 3,358 10,024 9,289 1,864 2,869 24,048 

IL 2,289 12,013 7,720 1,358 1,550 22,641 

OH 2,465 11,937 4,733 2,031 1,813 20,514 

NY 1,925 7,415 5,848 3,260 2,653 19,176 

PA 2,188 7,841 6,308 1,363 1,564 17,076 

IN 1,321 10,079 2,995 1,277 1,345 15,595 

WI 1,331 10,079 1,977 815 1,190 14,061 

MI 2,050 9,750 2,657 602 914 13,023 

NC 1,096 4,391 4,423 1,123 1,480 11,417 

Source: Source: REPP Component Manufacturing Wisconsin’s Future in the Renewable 

Energy Industry, 2006 *Exclusive of Geothermal energy. 

Wind Energy 

Energy from the wind is generated by wind turbines. Turbines are 

composed of rotors, vanes, gears, and other mechanical and electrical 

components (Table 5). California and Ohio are the top two parts 

producers for turbines. Job creation related to wind energy developments 

looks something like a pyramid; 70% of the potential job creation is in 

manufacturing the components, 17% in the installation, and 13% in 

operations and maintenance. New investments in wind technology in turn 

drives new orders for manufacturing related to all components required 
to build a new wind generator. 

A 2006 report of REPP for the state of Wisconsin uses the following 

figures to determine the job impacts of increased investment in the 

sector. According to REPP estimates, every 1,000 megawatts of energy 

generated by wind requires $1 billion in equipment investment. In rough 

terms this expansion in energy output is estimated to create 3,000 FTE. 

An increase of 50,000 MW of energy generated from wind results in 

20,000 new jobs in the top 20 component-producing states. Eight of the 

top 20 states are in Appalachia. Based on Appalachia’s fractional share of 

existing employment in wind-related parts industries, Appalachian states 

would likely to gain as much as a third of those jobs (+-7,000). Ohio is 

expected to gain the second largest number of jobs, behind California. 

A closer look at the supply base of states’ manufacturing key 

components for the wind energy industry, as seen in Table 6, shows 

Appalachia states benefit significantly from the installed base of potential 

supplier firms and resulting employment. 

Table 5. Key Wind Energy Industries 

NAICS Code Description 

326199 All other plastics products 

331511 Iron foundries 

332312 Fabricated structural metal 

332991 Ball and roller bearings 

333412 Industrial and commercial fans and blowers 

333611 Turbines and turbine generators and turbine generator sets 

333612 Speed changer, industrial 

333613 Power transmission equipment 

334418 Printed circuits and electronics assemblies 

334510 Measuring and controlling devices 

335312 Motors and generators 

335999 Electronic equipment and components NEC 
Table 6. Location of Employment by State, Sectors that Generate Inputs for Wind Energy-relat

State 

326199 

331511 

332312 

332991 

333412 

333611 

333612 

333613 

334418 

334519 

335312 

OH 47,179 10,650 4,171 4,566 1,140 177 807 1,448 1,352 2,447 4,5PA 26,259 4,969 7,009 1,303 316 1,073 815 972 2,413 2,387 2,0NY 19,522 478 2,227 2,205 522 3,276 1,055 1,140 10,411 2,040 1,7NC 14,682 385 2,684 2,152 355 1,502 310 1,006 2,098 517 3,3TN 12,817 3,056 2,850 1,615 19 - 17 745 2,156 1,093 3,6AL 8,329 6,401 3,774 784 142 375 22 182 2,223 254 48GA 9,756 1,511 3,073 1,955 155 - 250 94 1,242 554 1,9SC 7,646 440 2,969 6,244 75 1,449 452 125 15 91 72VA 9,009 2,323 3,440 7,724 392 3 424 3 463 406 1,4KY 11,423 412 1,232 601 44 - - 1,104 537 15 2,4MD 5,589 24 597 - 10 3 3 371 363 555 17WV 1,751 120 566 - - - 49 - 182 75 15MS 3,357 124 1,430 - - 175 - 209 750 40 3,2TOTAL 177,319 30,893 36,022 29,149 3,170 8,033 4,204 7,399 24,205 10,464 25,8
Table 7. Number of Employees, Partial List of Ohio Counties with Industries contributing to compone

OH County 

326199 

331511 

332312 

332991 

333412 

333611 

333612 

333613 

334418 

334519 

335312 

Adams 15 - - - - - - - - - - Allen 75 189 15 - - - - 75 - - 18 Ashland 404 - - - - - - - - - 3 Ashtabula 2,573 3 - - - - - - - - - Athens 35 - - - - - - - - - -  Auglaize 15 175 - - - - - - - - -  Belmont - - - - - - - - - - -  Brown - - - - - - - - - - 3  Butler 788 35 49 - 175 - - 75 69 - 1 Carroll 77 - - - - - - - - - -  Champaign 409 - - - - - - - - - -  Clark 347 - 7 - - - - - - 15 3 Clemont 235 - 175 - - - - - - 15 -  Clinton 284 35 35 - - - 7 - - - -  Columbiana 799 230 55 - - - - - - - -  Coshoctan - 375 3 - - - - - - - -  Crawford 375 - 3 750 - - - - - - -  Cuyahoga 1,998 1,031 250 24 175 - 419 504 129 459 58 Darke 359 - - - - - - - - - 3 Defiance - 1,003 175 - - - - - - - 7 
 Delaware 37 284 15 - - - - - - - - 

Erie 752 175 - 1,000 - - - 175 - 49 - 
A more refined estimate of the region’s job potential can be gleaned from 

a table that examines jobs in firms in the state of Ohio that produce 

products considered as potential inputs to wind turbines. While the 

majority of jobs are concentrated in the most populated counties in the 

state, nonetheless, spillovers to surrounding counties are likely given the 

distribution of manufacturing in the state (Table 7). Nineteen counties 

produce parts related to the Wind products industries. Of those, seven 

have more than 1000 jobs each or almost 14,000 job. 

A list of companies in the region that produce inputs for the wind energy 

industry cover the spectrum of key parts, suggesting that existing 

establishments have the potential to experience significant increases in 

demand is a national program is established to expand the production of 

wind energy nationally, regardless of the location of actual wind capture 

(Table 8). 

Table 8. Companies in Appalachian States Producing Inputs for the Wind Energy 

Industry 

Part Company City/Town State 

Bearings 

CAB Inc 

The Dyson Co 

CAB Inc 

Hodge Foundry Inc 

Lionville 

Painsville 

Oakwood 

Greenville 

PA 

OH 

GA 

PA 

Brakes 

Parker 

Hilliard Corp 

Afab Tech LLC 

Cleveland 

Elmira 

Mansfield 

OH 

NY 

OH 

Gearboxes 

Cleveland Gear Co 

Michael Bryne CMFG 

Canton Drop Forge 

Peerless Winsmith Inc 

The Cincinnati Gear Co 

Hodge Forge Inc 

Cleveland 

Mansfield 

Canton 

Springville 

Cincinnati 

Greenville 

OH 

OH 

OH 

NY 

OH 

PA 

Generators 

Hitachi America 

Motors and Controls Intl 

Tarrytown 

Hazelton 

NY 

PA 
HUB CAB Inc Oakwood GA 

Nacelle Frame Hodge Foundry Inc 

CAB Inc. 

Greenville 

Oakwood 

PA 

GA 

Pitch Drive Parker Cleveland OH 

Power 

Electronics 

ABB Inc 

Hitachi America 

Motors and Controls Intl 

1st Power.com 

Raleigh 

Tarrytown 

Hazelton 

Mansfield 

NC 

NY 

PA 

OH 

Rotor Blades Owens Corning Toledo OH 

Shafts The Dyson Corp 

CAB Inc 

Painsville 

Oakwood 

OH 

GA 

Towers 

Innovative Metal Products 

Newmark Inc 

Thomas and Betts Corp 

Kenoza Lake 

Birmingham 

Memphis 

NY 

AL 

TN 

Source: Compiled by the autho 

Solar Energy 

Photovoltaic (PV) technologies can be used to convert energy from the 

sun directly into electricity. As much as 10-20% of the energy from the 

sun can be converted into electricity using existing photovoltaic 

technologies. Many parts of the United States particularly areas of the 

West, where land is relatively inexpensive and population is sparse, have 

the potential to generate energy sufficient to satisfy a significant portion 

of local energy needs. Given rising petroleum prices, experts suggest that 

the solar energy field could grow as much as 30% each year over the next 

20 years, increasing installed capacity by more than 300%. 

Inputs to the Solar energy industry comprise a range of goods from flat 

panels that absorb solar radiation, to batteries that store the received 

energy, to wires used in the distribution of the resulting power (Table 9). 

The job creation potential of expanded photovoltaic energy generation is 

significant due to the fact that the bulk of new employment occurs in the 

manufacturing phase of industry development. With known technology, 

four states in Appalachia are in the top 20 states that manufacture 

components for the photovoltaic industry (Table 10). Two of the nation’s 

largest producers of photovoltaic components are in the region: the 
Sharp Module Assembly facility in Tennessee and BP Solar in Maryland. 

States in Appalachia are home to more than 2,000 establishments that 

produce components used in the photovoltaic industry. A rough estimate 

of the number of jobs currently in sectors that produce products that are 

potential inputs to the PV industry is above 180,000 (Table 10). Using the 

same method of calculating job generation given a specified level of 

investment, states in Appalachia could experience an increase of up to 

25,000 new jobs (Table 11). This constitutes almost a third of jobs in the 

top 20 states producing parts for the solar energy industry. 

Table 9. Key Solar Energy Industries 

NAICS Code Description 

325211 Plastics material and resin manufacturing 

326113 Unlaminated plastic film and sheet manufacturing 

327211 Flat glass 

331422 Copper wire 

332322 Sheet metal work manufacturing 

334413 Semiconductors and related devices 

334515 Instrument manufacturing for measuring and testing electricity 

335313 Switchgear and switchboard apparatus manufacturing 

335911 Storage batteries 

335931 Current carrying wiring devices manufacturing 

335999 Electronic equipment and components NEC 

 
Table 10. Location of Employment in Sectors that Generate Inputs for Solar Energy-Rela

State 

325211 

326113 

327211 

331422 

332322 

334413 

334516 

335313 

335911 

335931 

OH 3,808 2,778 394

- 7,469 1,510 1,929 3,292 943 2,360 

PA 3,332 2,880 1,336

- 7,239 10,046 899 1,854 2,308 3,302 

NY 1,141 1,602 409 245 6,889 10,378 2,313 565 403 2,285 

NC 2,151 2,150 571 37 3,678 4,190 810 1,698 1,159 3,216 

TN 1,033 880 2,127 15 2,188 92 56 1,556 376 414 

AL 1,119 236

3

- 2,214 431 264 203 35 1,035 

GA 1,343 2,357

3 75 2,930 16 448 1,938 1,859 586 

SC 2,452 1,971 375 375 945

- 764 2,058 750 618 

VA 238 2,836

- 35 2,772 3,768 300 678 10 123 

KY 2,962 780 209

- 1,711

7 17 1,904 924 284 

MD 79 416 15

7 1,734 771 564 1,225 5 34 

WV 3,349 15 409 175 689

3 116 249 75

3 

MS 1,053 483

-

- 1,365

- 177 426 375 249 

TOTAL 24,060 19,384 5,851 964 41,823 31,212 8,657 17,646 9,222 14,509 
Table 11. 

Location 

# of 

Firms 

New 

Jobs 

(Wind) 

New 

Jobs 

(Solar) 

New Jobs 

(Geothermal) New Jobs 

(Biomass) 

New Jobs

(Total) 

CA 4,658 14,147 24,288 3,320 2,848 44,602 

TX 2,795 10,000 12,299 1,841 3,281 27,401 

IL 1,961 11,303 8,472 1,455 1,715 22,946 

OH 2,156 13,215 5,957 1,896 1,854 22,922 

PA 1,839 9,029 8,119 1,538 1,832 20,517 

NY 1,605 7,876 6,318 3,136 2,683 20,013 

IN 1,154 11,186 3,824 1,410 1,524 17,954 

WI 1,123 11,335 2,193 845 1,844 16,218 

MI 1,817 10,369 2,457 587 1,021 14,435 

NC 940 4,897 4,722 1,350 2,005 12,976 

Source: Source: REPP Component Manufacturing Wisconsin’s Future in the Renewable 

Energy Industry, 2006

Biomass Sectors 

Conversion of plant material, human and animal waste, and trash to 

direct energy fuels such as methane or ethanol is termed biomass energy. 

Methane, a natural product of organic decomposition can be burned 

directly for heat or used to power a gas turbine or internal combustion 

engine driving a generator to produce electricity. Plant material such as 

crops rich in sugar or starch can be fermented and distilled to produce 

ethanol which can then be blended with gasoline. Promising new 

technologies (lignocellulose biorefineries) form the basis of a potential 

new industry converting lower cost waste wood and cellulose rich crops 

like switchgrass or fast growing trees into ethanol. 

The biomass sector is composed of different subsectors based on the 

type and origin of the feedstock: conventional fermentation-distillation, 

lignocellulose, manure methane, wastewater treatment methane, and 

methane from landfills. Though not strictly a biomass source, ventilation 

air exhaust from coal mines also yields recoverable methane. 
Considerable experimental work is being conducted on biomass to 

increase energy development. Few studies, however, are looking at ways 

to convert the energy embedded in different forms of biomass into jobs. 

According to a national study by REPP of the jobs potential of the 

expansion of energy production from biomass, as many as 32,000 new 

jobs could be created with a $5 billion investment in productive 

technology, including both manufacturing and operations. Of the 

industries examined in this report, biomass is considered the most likely 

to generate the largest number of post-manufacturing operations and 

maintenance jobs (Table 12). 

Table 12: Estimated Number of Firms, Investment, New jobs 

Expansion of Renewable Sources 

U.S Firms Investment ($million) New FTE Jobs 

Wind 16,480 $24,955.2 159,516 

Solar 10,272 $27,849.6 119,277 

Geothermal 3,926 $6,133.2 28,934 

Biomass 12,020 $5,296.8 32,632 

Total 42,698 $64,234.8 340,359 

Source: Source: REPP Component Manufacturing Wisconsin’s Future in the Renewable 

Energy Industry, 2006

Summary 

In summary, it is evident that states in Appalachia are poised to benefit 

from alternative energy development. Many states in the region produce 

components used in the manufacture of three key sectors: wind, solar 

and biomass. In the next section we look specifically at nine detailed 

industry groups producing inputs for the wind and solar industries. With 

more information a similar assessment could be made for the biomass 

industry. These results highlight the fact that Appalachian states have 

high concentrations of employment in these key sectors compared with 

their fraction of employment nationally. 

 
Part Four Exploring the Share of Employment in Key 

Sectors in the Wind and Solar Energy Sectors, States in 

the Appalachian Region 

As a final step in this initial assessment, we isolated nine four-digit 

industries producing inputs for the wind energy and photovoltaic 

industries and examined the fraction of their employment found in ARC 

states. This was compared with the fraction of total national employment 

accounted for by the 13 states (Table 13). The results indicate that 

Appalachian states account for, on average, more than 35% of total 

employment in the sectors (Table 14). Assuming that an increase in the 

production of energy employing wind and solar technologies would 

produce demand for inputs from existing suppliers, states in Appalachia 

would be expected to experience growth of demand and expansion of 

employment in response to this development. Given that states in the 

region already account for more than a third of total national employment 

in key sectors supplying these two energy industries, we can expect that 

in the short term the region will gain a proportionate share of job growth 

due to increases in the utilization of solar and wind energy for the 

generation of electricity (Table 15) . Biofuels production including storage 

and distribution embodies many of the same attributes as oil and gas 

production. States in the ARC region are parts and equipment suppliers 

to the oil and gas industry. Given that the biofuels industry utilizes many 

of the same inputs to produce, store and transmit energy as the solar and 

wind and oil and gas industries (Table 14), growth in output of this sector 

can be expected to generate jobs in the region. 
Table 15. Key Sectors in the Wind and Solar Energy Sectors 

NAICS Code Description 

3324 Boiler manufacturing 

3325 Hardware manufacturing 

3336 Engine, turbine, & transportation equipment manufacturing 

3353 Electrical equipment manufacturing 

3345 Measuring devices 

3334 Ventilation 

3315 Foundries 

3326 Plastic and rubber products 

3359 Other electrical and communications equipment manufacturing 

 

 

 

 

 

 

 
Table 13. Employment in Key Sectors in the Wind and Solar Energy Sectors, States in the Ap

State 

3324 

3325 

3336 

3353 

3345 

3334 

3315 

3326 

AL 1,357 843 1,307 773 2,176 2,045 7,932 17,341 2MD 714 278 1,749 750 12,123 2,042 175 7,791 GA 2,535 1,214 2,158 4,981 3,120 7,014 1,778 27,749 6KY 1,607 2,077 1,842 3,941 899 4,405 4,302 19,833 2MS 1,916 1,431 965 4,967 795 4,036 620 9,849 NY 4,167 2,085 6,191 4,817 14,371 6,022 3,314 29,692 7NC 1,535 2,719 4,198 8,636 4,012 5,577 1,448 39,870 10OH 10,383 3,459 4,512 9,220 12,316 7,590 19,642 87,554 7PA 4,963 2,409 1,962 5,359 14,371 5,851 11,038 45,927 11SC 1,071 534 6,263 3,569 2,669 1,750 928 22,316 4TN 2,205 3,669 1,562 5,101 3,544 9,543 4,175 32,391 3VA 1,396 375 687 4,990 9,014 5,152 3,250 24,329 2WV 455 55 55 347 522 55 375 3,826 US 87,234 56,766 91,856 146,860 403,693 152,354 171,769 921,392 16Source: Compiled by the authors 
Table 14. % of US Employment in Key Sectors in the Wind and Solar Energy Sectors, States in 

Appalachian Region 

State 

3324 

3325 

3336 

3353 

3345 

3334 

3315 

3326 

AL 1.56 1.49 1.42 0.38 0.54 1.34 4.62 1.88 1MD 0.82 0.49 1.90 0.37 3.00 1.34 0.10 0.85 0GA 2.91 2.14 2.35 2.44 0.77 4.60 1.04 3.01 4KY 1.84 3.66 2.01 1.93 0.22 2.89 2.50 2.15 1MS 2.20 2.52 1.05 2.43 0.20 2.65 0.36 1.07 0NY 4.78 3.67 6.74 2.36 3.56 3.95 1.93 3.22 4NC 1.76 4.79 4.57 4.23 0.99 3.66 0.84 4.33 6OH 11.90 6.09 4.91 4.51 3.05 4.98 11.44 9.50 4PA 5.69 4.24 2.14 2.62 3.56 3.84 6.43 4.98 7SC 1.23 0.94 6.82 1.75 0.66 1.15 0.54 2.42 2TN 2.53 6.46 1.70 2.50 0.88 6.26 2.43 3.52 1VA 1.60 0.66 0.75 2.44 2.23 3.38 1.89 2.64 1WV 0.52 0.10 0.06 0.17 0.13 0.04 0.22 0.42 0Total 39.32 37.25 36.42 28.12 19.80 40.09 34.34 39.99 38Source: Compiled by the authors 
Summary and Concluding Comments 

Centrally located within the Nation’s traditional industrial heartland, 

Appalachian states stand to gain significantly and for the foreseeable 

future from the expansion of energy and electrical power sources. 

Demand for non-renewable resources such as coal, natural gas, and oil is 

expected to expand assuming energy prices remain high. At the same 

time, job growth in the fossil fuel sector may be limited by the 

application of more productive mining practices at existing operations. 

There is some evidence that Appalachian coal may be at a disadvantage 

vis a vis western coal due to the higher sulfur content of Appalachian 

coal, lower production costs of western mines and reductions in the 

benefit of transportation costs which are becoming an ever smaller share 

of the delivered cost of coal, especially in instances where imported coal 

can reach recipient power plants along the Mississippi River. While there 

are certain limits to job growth due strictly to electrical power generation, 

the region’s coal reserves are an important feedstock for the production 

of metals, gases, and other industrial products. Sectors producing 

hardware for the energy industry are likely to experience growth of 

output in response to new demand for both renewable and nonrenewable energy sources. 

It remains to be seen how the Nation addresses the challenges of carbon 

sequestration to limit CO2 emissions and how this will impact 

employment. While there will be growth of employment in technical 

fields associated with identifying and developing alternative means of 

sequestering CO2, there also are likely to be job losses associated with 

the decommissioning of aging production equipment, power plants, and 

reductions of other sources of CO2. Since the science of sequestration is 

presently in its infancy, estimates of impacts are limited at present. While 

federal initiatives to examine a range of short, medium and long term 

options, none of them are at the point of commercialization. 
The creation of new energy supplies associated with renewable energy 

sources is likely to generate substantial new employment. Appalachia’s 

industrial base contributes major inputs to wind, solar, biofuels, and 

other non-fossil fuel sources. Estimates of future growth in these sectors 

are significant and some research suggests thousands of new jobs will be 

created as these sectors expand in and outside of the region. 

The research conducted for this report suggests Appalachia has a 

significant opportunity to contribute to both national energy 

independence and to the achievement of regional import substitution in 

the area of energy. There are significant opportunities for regional and 

community-scaled industrial development, especially in the areas of biofuels. Significant choices exist in the selection of a minimum scale of 

production for many of the new technologies and energy sources. 

Technologies in these fields are changing rapidly and dramatically. Thus 

planning for Appalachia’s energy future is dynamic and subject to 

change. 

This report is a first cut at an understanding of the energy potential of 

the Region. More sophisticated and more cumulative analyses are in 

order as part of the implementation of an energy blue print. All the 

evidence suggests Appalachian communities stand to gain from high 

energy prices, the development of new energy sources and technologies 

and the creation of solutions to reduce the nation’s CO2 emissions. 
References 

Energy Information Agency. 2006. Annual Energy Outlook 2006 with 

Projections to 2030. http://www.eia.doe.gov/oiaf/aeo/coal.html

Environmental Protection Agency. 2006. Climate Leaders.

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Renewable Energy Policy Project. 2001. The Work That Goes into 

Renewable Energy.

http://www.repp.org/articles/static/1/binaries/LABOR_FINAL_REV.pdf

General Accounting Office. 2004. Renewable Energy: Wind Power’s 

Contribution to Electrical Energy Generate and Impact on Farms and 

Communities. http://www.gao.gov/new.items/d04756.pdf

Renewable Energy Policy Project. 2001. The Work That Goes Into 

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Renewable Energy Policy Project. 2004. Wind Turbine Development: 

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http://www.irecusa.org/articles/static/1/1140213597_987094287.html

State-Specific Reports 

 Daniel M. Kammen, Kamal Kapadia & Matthias Fripp. April 2004. Putting 

Renewables to Work: How Many Jobs Can the Clean Energy Industry 

Generate? The Renewable and Appropriate Energy Laboratory at 

University of California, Berkeley. 

Environment California Research & Policy Center. 2003. Renewable Energy 

and Jobs: Employment Impacts of Developing Markets for Renewables in 

California . 

Renewable Energy Policy Project State Report (REPP). 2005. Component 

Manufactu ing: Ohio’s Future in the Renewable Energy Industry r . 

Renewable Energy Policy Project State Report (REPP). 2006. Component 

Manufacturing: Wisconsin’s Future in the Renewable Energy Industry. 

University of Illinois at Chicago. 2005. The Economic and Environmental 

Impacts of Clean Energy Development in Illinois 

Policy Matters Ohio and the Apollo Alliance. 2005. Generating Energy, 

Generating Jobs 

Regional Economics Applications Laboratory for the Environmental Law & 

Policy Center. 2001. Job Jolt: The Economic Impacts of Repowering the 

Midwest. 

Dave Algoso and Emily Rusch. 2004. Renewable Work: Job Growth from 

Renewable Energy Development in the Mid-Atlantic. NJPIRG Law and 
Policy Center, 

Center for Energy, Economic and Environmental Policy at Rutgers. 2004. 

Economic Impact Analysis of a 20% New Jersey Renewable Portfolio 

Standard. 

Global Insight . 2003. Economic Impact Analysis of the Cape Wind OffShore Renewable Energy Project, for Cape Wind Associates. 

Black & Veatch. 2004. Economic Impact of Renewable Energy in 

Pennsylvania. The Community Foundation for the Alleghenies. 

Virtus Energy Research Associates. 2002. What Renewable Energy Means 

to Texas.