Port facilities and the international coal market

This study examines the relationship between the increased demand for U.S. coal in the early 1980s, and the coal pier congestion that accompanied and hampered it. We find an export price elasticity for U.S. coal of -16.7, and a port service price elasticity of -0.8, suggesting deadweight losses of approximately $4 million per month. We then separate the short-term from the long-term changes in the demand for U.S. coal exports. The long-term demand estimates predict increases of 77% in U.S. coal exports, compared to the actual 83% increase in shipping capacity provided by coal shippers.