BENEFIT-COST ANALYSIS OF THE COAL MINE HEALTH AND SAFETY ACT OF 1969

This thesis examines benefits and costs of the Coal Mine Health and Safety Act of 1969 in underground bituminous coal mines. Econometric models are developed for labor productivity and fatal and nonfatal injury rates. The models are applied to time-series data from 1950 through 1975 for West Virginia, Pennsylvania, Illinois, Ohio, and eastern and western Kentucky. Estimates are made of reductions in productivity and injury rates that are due to the Mine Act in 1970 through 1975. Benefits that are estimated are: (1) the value of human capital services saved, using calculations of the present value of expected future earnings and (2) medical costs of injuries. Costs that are estimated are: (1) the added cost of the additional labor required to produce a given tonnage, (2) increases in capital costs per ton, and (3) wages of additional inspection personnel. Finally, benefit-cost ratios are presented, and sensitivity analysis is performed.