POLICY ALTERNATIVES FOR RECLAIMING SURFACE MINED LANDS.

Recently enacted surface mining controls express congressional concern with the potential for environmental damage. But how to implement the new statutes while preserving congressional intent remains a controversial issue. Resolution is left largely to federal agencies and the affected states. This paper addresses the issue of how best to internalize the external costs created by surface coal mining. Section II is an examination of the inherent difficulties of operationalizing a Pigouvian solution. Section III is a review of an example of actual regulation and policy based on the case of Eastern Kentucky; and Section IV offers suggestions as to the advantages and disadvantages of alternative policy tools.