Skip to main content
Article
The Power Law Distribution of Cumulative Coal Production
Physica A: Statistical Mechanics and Its Applications (2019)
  • Andrew Balthrop, University of Arkansas, Fayetteville
  • Siyu Quan, Tulane University
Abstract
The coal industry is dominated by the largest mines, with 1% of coal mines in the US being responsible for 65% of cumulative production. This provides evidence that cumulative coal production may be well approximated by a
power law, where the amount of production is inversely proportionate to the distributional rank. Maximum likelihood and regression-based procedures estimate the counter-cumulative power law parameter to be less than one,
indicating there is no well-defined mean or variance for cumulative production. Goodness of fit tests indicate the power-law is a better fit to the data than other competing one-parameter distributions. Additionally, the powerlaw
specification is demonstrated to satisfy Wilks’s test and a uniformly most powerful test. The power-law distribution is relevant for policy consideration because while production is power-law distributed among mines, labor
hours are not; thus a substantial reduction in production can be achieved with a comparatively modest reduction in labor hours.
Keywords
  • power law,
  • pareto,
  • coal
Publication Date
June, 2019
Citation Information
Andrew Balthrop and Siyu Quan. "The Power Law Distribution of Cumulative Coal Production" Physica A: Statistical Mechanics and Its Applications (2019)
Available at: http://works.bepress.com/andrew-balthrop/4/