The disaster earlier this month in a West Virginia coal mine killing at least 29 miners (and the wreck of the Deepwater Horizon drilling rig in the Gulf of Mexico) reminds us of the extreme hazards of that occupation; the human cost of supplying fifty percent of the nation’s electricity at an affordable price is indeed high.

We all know that underground coal mining is a dangerous business; especially in Appalachia, where 150 years of digging has gathered the low hanging fruit. Remaining coal is difficult and hazardous to dig.

The coal industry’s safety record has improved in recent years with fatalities one-tenth of several decades ago. But the reason for this is the shift to surface mining in Montana (home to one-third of all U.S. coal deposits) and Wyoming. Although western coal has a slightly lower BTU content, it is low in sulfur and far cheaper and safer to extract. In sum, its net social costs are far lower than the eastern analog, which entails removing entire mountaintops and dumping them into streambeds.

Mountaintop removal and the concomitant environmental damage are offensive and surely violate environmental regulations. Only the intervention of West Virginia’s state and federal politicians makes this possible. While eastern coal generates inexpensive electricity, the price does not include the costs to Appalachian communities and deeply discounts the value of its ecosystems.

The protection of eastern coal interests by politicians has a long and sordid history. This classic case is described by Bruce Ackerman and William Hassler in their book, “Clean Coal/Dirty Air: How the Clean Air Act Became a Multibillion-Dollar Bail-Out for High-Sulfur Coal Producers.” They show how amendments to the 1977 Clean Air Act requiring the use of expensive scrubbers effectively raised a competitive barrier to western coal.

Between 1985 and 2005 the number of coal miners in Appalachia declined from 122,102 to 53,509. Despite this the industry is still responsible for tens of thousands of high paying jobs. Since West Virginia's coal industry plays a vital role in the state’s overall economy, a reduction in coal production would have serious consequences.

Perhaps Montana’s experience offers a lesson. Forestry, one of Montana's traditional industries faces rough times. With continued demands for environmental quality and rejection of the negative consequences of resource extraction, the future of our state’s timber economy and the communities that rely upon it ain’t what it was.

Here’s one reason why. The wood industry is second only to Alaskan commercial fishing in terms of worker mortality and injuries. The industry is highly volatile, employment fluctuates widely, and workers face long commutes on dangerous roads. Further, new Montana residents are tinted Green.

A community with an economy based upon a single factor (e.g., timber or coal) is subject to external influences beyond easy control. International markets, national monetary policy, investment strategies of large corporations, and environmental regulations often matter much more than physical availability of the resource.

As Montana changes, in many ways for the better, so can West Virginia. This transition unsettles ways of life deeply rooted in the culture of resource extraction. Global forces shaping new economic landscapes challenge communities, regions, and even states that considered natural resource industries as central to their economic success.

Roadless lands, wilderness areas, free-flowing rivers, national parks and forests, and healthy wildlife habitat stimulate much new economic activity. These amenity values attract talented entrepreneurs. Freed by email, FedEx, and the internet, “modem cowboys” (and cowgirls) relocate to small towns or rural areas all seeking a different lifestyle and high environmental quality.

I have a well-educated, highly successful British friend. He’s a few years into a well-deserved retirement and could have chosen any place to live. Given his birthplace, Canada, Australia, or New Zealand might have been logical choices. His pick? West Virginia. Knowing him I bet it has something to do with the state’s rural character, the beauty of the fall foliage, and it’s proximity to Washington, DC.

Resource-dependent communities, like others, seek economic progress. Their future will largely depend on how their entrepreneurs respond to changing opportunities and preferences. To succeed, they should focus on their capacity to attract and retain new economic activity. And environmental quality is a key resource easily squandered by political opportunism.