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Vedansh Garg

West Virginia’s Economic Crossroads: A Future Beyond Coal

Updated: Jul 19

West Virginia Coal Miners


West Virginia has historically been heavily dependent on coal for its economy. West Virginia’s coal industry has created jobs and supported local communities for centuries. However, with the global shift towards renewable energy, the state is facing a crucial moment. The future sustainability of its economy is uncertain, particularly due to the political and personal ties that have kept it tied to the coal industry. Senator Joe Manchin's influence on the state’s economy highlights the self-serving political motivations that are impeding progress. In order for West Virginia to prosper in the coming years, it must break free from these entrenched interests and welcome economic diversification.



The Coal Legacy and Economic Stagnation


Coal has been the center of West Virginia’s economy since the late 19th century. At its height, the industry provided over 125,00 jobs. However, the industry’s decline has led to significant economic challenges. Today, fewer than 20,000 people are employed in coal mining, and West Virginia’s economic growth lags behind national average. The state’s GDP grew at an average annual rate of just 0.6% from 2010-2020, compared to the national average of 2.3%. This economic stagnation is a direct result of over-reliance on a dying industry.



Senator Joe Manchin’s Role in Perpetuating Coal Dependency


Senator Joe Manchin, a Democrat from West Virginia, has played a pivotal role in maintaining the state’s coal dependency. His political actions have consistently favored the coal industry, often at the expense of environmental progress and economic diversification. Manchin’s family business, Enersystems Inc., deals in waste coal–a highly carbon-intensive fuel. As governor and now as Senator, Manchin has used his influence to protect and promote coal. In 2009, Manchin supported a provision in a clean energy bill that classified waste coal as an alternative energy source. This reclassification benefited his family’s business financially and allowed utilities to count waste coal towards renewable energy goals, which diluted the impact of genuine renewable energy initiatives. This maneuver shows how Manchin’s political decisions were driven by personal interest rather than the broader needs of West Virginia’s economic future. 



The Impact of Political Self-Interest on Economic Progress


Manchin’s influence extends to federal climate policy, where he has used his position to shape legislation in favor of coal. His opposition to the Build Back Better bill–a $1.7 trillion social spending package–effectively stalled one of the most ambitious climate plans in U.S. history. By removing clean energy programs from the bill, Manchin protected coal interests but sacrificed potential advancements in renewable energy that could have benefited West Virginia economically and environmentally.


The consequences of these actions are stark. West Virginia continues to have one of the lowest rates of renewable energy adoption in the country. More than a decade after the enactment of a law intended to increase the state’s clean power to 25% by 2025, only 6% of its power comes from renewable sources, while 88% still comes from coal. This imbalance underscores the extent to which political self-interest has prevented progress.



West Virginia Must Overcome Political Barriers


West Virginia’s economic future relies on its ability to overcome political barriers and special individual interests. Joe Manchin’s continued promotion of coal represents a significant obstacle to progress. While his actions may benefit his family business and the coal industry in the short-term, they undermine the long-term economic health and sustainability of West Virginia. 


West Virginia must pursue a forward-thinking and sustainable strategy that prioritizes diversification, innovation, and long-term benefits. Through supply-side interventionist policies such as investments into higher quality public education and public infrastructure projects, West Virginia can create a diverse and productive economy. West Virginia’s path forward requires leadership that prioritizes the interests of the people rather than personal gain.




Bibliography:


Alexander, Kathy. “West Virginia Coal Mining – Legends of America.” Legends of America, May 2024, https://www.legendsofamerica.com/west-virginia-coal-mining/. Accessed 20 June 2024.


Mataloni, Lisa, and U.S. Department of Commerce. “Gross Domestic Product by State and Personal Income by State, 4th Quarter 2023 and Preliminary 2023 | U.S.” Bureau of Economic Analysis, Bureau of Economic Analysis, 29 March 2024, https://www.bea.gov/news/2024/gross-domestic-product-state-and-personal-income-state-4th-quarter-2023-and-preliminary. Accessed 20 June 2024.


Statista. “Real GDP West Virginia U.S. 2023.” Statista, 10 May 2024, https://www.statista.com/statistics/188147/gdp-of-the-us-federal-state-of-west-virginia-since-1997/. Accessed 20 June 2024.


Waldman, Scott. “How Manchin used politics to protect his family coal company.” Politico, 8 February 2022, https://www.politico.com/news/2022/02/08/manchin-family-coal-company-00003218. Accessed 20 June 2024.


Wikipedia contributors. "Economy of West Virginia." Wikipedia, The Free Encyclopedia. Wikipedia, The Free Encyclopedia, 3 Mar. 2024. 







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