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ENERGY & ENVIRONMENT

Moving Beyond Coal: Using a Carbon Tax to

Train Coal Workers and Jobs
By Brian McDermott, Roosevelt @ American

Thesis
The federal government should implement a carbon tax to bring an end to coal production, and to
fund higher education for laid-off coal workers and a temporary jobs program that will employ
former fossil fuel workers in a national service program.

Background Analysis
When it comes to greenhouse gas emissions, coal is the dirtiest fossil fuel.1 The extraction and
burning of coal is both environmentally and socioeconomically unsustainable; strip mining leads to
deforestation and the wreckage of ecosystems.2 As climate change leads to a global public health
crisis, rapidly rising sea levels, deeply severe natural disasters, and an exacerbation of hunger and
war, a moral and economic duty exists to end the use of coal energy.

Beyond its environmental impacts, coal is a dying industry. Feeling pressure from stricter
regulations, cheap natural gas, and rapidly falling renewable energy prices, the coal industry is in
decline. Regardless of government regulations and taxing, the industry is struggling to compete
with other energy producers. Coal jobs have been disappearing for decades and will further decline
as mines shut down and coal companies file for bankruptcy. This leaves thousands of low-skill
workers unemployed. Removing low-skill coal workers from their jobs and telling them to fend for
themselves in the midst of small labor markets and poorly diversified economies is not an option
either. Only 3 percent of coal workers have a bachelors degree or higher.3 Fortunately, this need
not be a choice between bad and worse. Both of these issues can be addressed and lead to a stronger
economy and a stronger America.

Talking Points
Economists agree that a carbon tax is the
most effective way to address the urgent
challenge of climate change.4
Free community college in particular has
been implemented successfully in
Tennessee, but instead of funding it
KEY FACTS
According to the Obama administration, by
the beginning of the next decade
approximately 1/3 of all jobs will require at
least some college, an associates degree,
or a bachelors degree.
10

through lottery reserves and other

allocations as it is there, a national policy The New York Times reports that major
could be funded by a tax on the energy companies could benefit from a
detrimental actions of the fossil fuel carbon tax because it would force utilities to
buy more of their natural gas.
industry.5
The Brookings Institution finds that between
Similar to the revolutionary Public Works 1987 and 2004, the number of coal industry
Administration and Civilian Conservation jobs declined by more than 50%.
Corps of the New Deal era, a national
service program could put fossil fuel
workers in good-paying jobs that
dramatically strengthen our country.

COPYRIGHT 2017 BY THE ROOSEVELT INSTITUTE. ALL RIGHTS RESERVED.

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Policy Idea
ENERGY & ENVIRONMENT

The federal government should impose a carbon tax on fossil fuel companies. Beginning the carbon
tax at $25 per ton of CO2 and gradually increasing it would likely end all coal production around
2040.6 The revenue gathered from this tax would be used to pay for two programs. The first would
allow laid-off fossil fuel workers to attend community college or a technical skill retraining program
for free. The other would be a temporary jobs program that would hire these unemployed workers
to conduct service projects.

Policy Analysis
Economists agree that a carbon tax is the most effective way to combat climate change. This is
largely because it is a market-based policy, allowing free markets to operate without the constraints
of regulations while gradually shifting energy sources from fossil fuels to renewables. As fossil fuel
companies pay more in taxes, consumers feeling the cost will be encouraged to reduce their carbon
consumption and shift to more sustainable lifestyle choices. According to a CBO analysis from 2013,
a carbon tax that begins at $25 per ton of CO2 and increases by 2 percent each year would generate
$90 billion in its first year and $1.06 trillion over the first 10 years.7 When considering how to spend
that revenue, using it to support former fossil fuel workers would be wise.

Since 1987, the number of coal industry jobs has been cut in half. This is particularly difficult
because coal miners are paid well ($1,492 per week on average), yet few have more than a high
school education.8 This means that the job opportunities are limited for laid-off coal workers, and
to the extent that there are employment opportunities available, they will likely not pay as well as
the coal mines.

Funding community college educations for these laid-off workers would be relatively cheap. The
state government of Tennessee gives students an average of $971 in addition to Pell Grants and
other scholarships to completely fund their education. 9

With the revenue that the carbon tax would bring in, every former coal miner who wants a job could
get one working for a national service program. Similar to AmeriCorps, employees could choose
how best to utilize their skills to assist with education, disaster relief, environmental protection,
health care, or another form of service. As they are in the program, they would have the option to
attend all-expenses-paid community college before entering into a new career path.

Next Steps
A bill of this magnitude would require the strong support of environmental advocacy groups
and state politicians where the fossil fuel industry is dominant. Gathering the support of
groups like the Sierra Club and Environmental Defense Fund is important to gaining credibility.
Furthermore, it is important for politicians representing fossil fuel-dominated states to support
the bill. Lobbying efforts should be directed at members of Congress such as Ohio Senator
Sherrod Brown and West Virginia Senator Joe Manchin. This support should be coupled with
leaders on current climate policy like Senators Bernie Sanders and Ed Markey.

COPYRIGHT 2017 BY THE ROOSEVELT INSTITUTE. ALL RIGHTS RESERVED.

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ENERGY & ENVIRONMENT

End Notes
1
"The True Cost of Coal." Greenpeace International, Dec. 2008. Web.
2
Ibid
3
Morris, Adele C. "BUILD A BETTER FUTURE FOR COAL WORKERS AND THEIR COMMUNITIES."
(n.d.): n. pag. Brookings Institution, 25 Apr. 2016. Web.
4
"The Case for a Carbon Tax." The New York Times. The New York Times, 06 June 2015. Web.
5
"FACT SHEET - White House Unveils America's College Promise Proposal: Tuition-Free Community
College for Responsible Students." The White House. The United States Government, 09 Jan. 2015. Web.
6
Morris 2016
7
Ibid
8
Ibid
9
Kim, Anne. "Tennessee Promise: Offering Free Community College to All Residents." Republic 3.0. N.p., 09
Mar. 2015. Web.
10
"FACT SHEET - White House Unveils America's College Promise Proposal: Tuition-Free Community
College for Responsible Students." The White House. The United States Government, 09 Jan. 2015. Web.

COPYRIGHT 2017 BY THE ROOSEVELT INSTITUTE. ALL RIGHTS RESERVED.