The purpose of my study is to devise a framework that encompasses the strategies put forth by the Colombian government as to advancing the productivity and competitiveness of the country, with an emphasis on finding development alternatives for the medium-scale coal sector, tackling its shortcomings, and improving the sector's situation. The framework integrates three dimensions of analysis including the Colombian national policies for productivity and competitiveness, coal sector development, and environmental conservation. I lay out several coal-development alternatives and evaluate their economic and environmental performances using input-output analysis, and multi-criteria decision analysis for alternative selection. I also model different scenarios prioritizing each of the dimensions of analysis. The results from the scenario analysis show that coal gasification suits best the three dimensions of analysis, providing the highest economic benefits with the least environmental impacts of the proposed development alternatives. In addition, I use Geographic Information Systems to conduct location-suitability analysis for the coal fields in the interior of Colombia. Results of the suitability analysis portray coal fields in the Córdoba and Cundinamarca Provinces as the most suitable regions for coal-gasification development.