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One-third of Australia’s coal-fired power stations closed during 2012–2017, with most of the remainder expected to close within the next two decades. Most new generation capacity is in the form of solar and wind. In this paper we conduct an event study to assess the local unemployment effects of the coal-fired power station closures. We use monthly regional labour force survey data from the Australian Bureau of Statistics. We find that there has on average been an increase in local unemployment of around 0.7 percentage points after closures of coal-fired power stations, an effect that tends to persist beyond the months immediately after closure. In the context of the overall variation in regional unemployment rates, however, the implications are relatively modest. The findings raise questions about appropriate policy responses for dealing with local structural adjustment issues facing coal-reliant communities. Implications for the Indian context will be discussed.

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