A COMPARISON OF THE EFFECTS OF COAL PRODUCTION IN WEST VIRGINIA AND SHANXI

摘要

The United States (U.S.) and China are the two largest producers and consumers of coal in the world. Shanxi province and the state of West Virginia (WV) are major coal producing regions in the U.S. and China respectively. Coal plays a significant role in these regions' economy, political landscape and environment. This paper will perform a comparative economic analysis of coal production and employment patterns between Shanxi province and the state of West Virginia. ARIMA models will be used to forecast coal production and employment for both regions while the ARCH and GARCH(1,1) models will be employed to model and estimate volatility. Results of this analysis should help uncover the challenges and opportunities facing the coal industry in the two regions. Furthermore, Shanxi and WV can work together to address the mutual challenges associated with coal production. In the end, this study will contribute to endeavors that promote energy collaboration and economic development between the two nations.