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I woke up this morning to read some of the best news for the planet I’ve seen in a long time. On page 1 of the WSJ was an article proclaiming that China’s wild demand for energy has finally spurred a coal-price surge.
(Click here to read the Journal article.)
Finally, the demand for coal is driving up the price. Forever, it seems, China has been a net exporter of coal to the world, and finally their insatiable appetite is making them a net importer. This has triggered a huge rise in the price of coal (see graph above). I think this is actually a good thing that supply and demand is working. I think this is a great thing for the planet because I believe the only way we can beat coal is to make electricity by renewable means that actually beats the price of coal. That’s a VERY tall order, but now is made easier with the price increase. Further, I think the ultimate solution to the energy demand is to make electricity renewably for cheaper than coal, eventually, with NO subsidies. This is only possibly, I believe, if the full externalities of coal usage are priced in. But they are not. Until they are – and I’m not holding my breath until they are, if they even ever are – then the best way to compete is for supply and demand to properly set the price. And this is the first move in a long time that I’ve seen to reflect that, and I think it’s a good thing for long term, albeit painful to energy consumers in the short term.
My God, we are all focused on $100 oil while meanwhile coal has tripled?
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\nIt is great to see the market forces at play. I just wished that the price of any fossil fuel included all the costs of externalities such as the damage to the environment and wars.
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\nPlease keep posting!
Today the price of oil is $ 130/narrel and coal peice is also going up renewanle price is comming down Good for the enviorenment. Thank God.
is good news. it will make the inevitable change easier and quicker
Wind Power in Denver in July was CHEAPER than polluting usual XCEL Power………Why not cover WIND since WIND is now priced competitively???? T Boone Pickens is into wind and so am I!
Skibare
I think that environmental concerns of energy is the future.
However the increase of coal doubling in the last ear,is mostly being spawned by fears of oil prices.
We hear excuses that it comes from countries such as China,and India in which both use 74% and 70% of coal to produce their energy.
However China has been a main exporter of coal,so while they continue to consume larger amounts it doesn’t effect the supply of the coal on a global scale.
I think it’s more of a price controlled environment,in which will only become volatile rather stable.
Will it help move on to better energy sources perhaps,but again the households that consume the highest amount of energy aren’t going to be able to afford the alternatives,only the rich will be able to benefit.
Disconnecting from the grid is great,bhut nearly impossible,the technolog has a while to go,and batteries are still dangerous.