A Costly, Deadly Obsession with Coal
wsj.com
wsj.com
In practice, the entire coal mining industry employs fewer people than Arby's (true fact). Expensive changes to environmental regulations, environmental costs aside, will help very few people in that industry. Coal is gonna go the way of buggy whips, and and politicians will still do the moral equivalent of demanding we ban cars because they frighten the horses.
The real trick is going to be reworking the grid to take advantage of the intermittent nature of wind and solar. And the Invisible Hand has opinions about that. If you can cache enough power to stabilize the grid, then the whole "baseline" model currently provided by coal and nuclear plants running at near-capacity goes away.
And storing power isn't exactly rocket surgery. There are a whole lot of ways to do it - batteries, compression, gravity, thermal, etc. Add in smart micrometering (which also isn't exactly rocket surgery), and you create an arbitrage opportunity. Buy energy when it's cheap (when the wind blows and the sun shines), and sell it when it's dear (the demand is up and the sun is down). The invisible hand smooths out the ripples for us. The difference is power prices metered by the second or the minute, not the year. Market forces will regulate the prices, not actual regulation.
And because this combination cache baseline and zero-margin generation is so efficient, it'll quickly displace fossil and nuclear financially.
We just need to survive another couple of decades.
France is 74%, a strong outlier, but I don't think they have much domestic coal.
France has a strong nuclear culture (though with fierce opposition from part of the population). Not too sure about the reason, but it might be because France has few resources, but lots engineering expertise. Nuclear also don't have much CO2 emissions and produce cheap electricity.
Yes, that's all well and good, when we have a functioning Democracy, one that will regulate just enough to keep the playing field level, instead of regulating for large corporations to give them an advantage. Look at Comcast, AT&T and others like them. Regulation allows them to reap huge profits for subpar service, that their customers agree is not what they want, but we don't have any choice.
For the last 40+ years, the true aim of Republicans in Congress and the Executive has been to insure that Corporations have more rights than The People. All this culture war bullshit is a diversion (and we've been playing along so nicely devouring each other while the world shifts under our feet). Democracy has been taken over by corporatists.
The question is, will The People recognize this before it's too late to reverse (by Democratic means)?
Regulation isn't what helps large companies reap high profits. Monopoly and friction does. Read your Peter Thiel! In a truly free market, competition drives profit margins to zero. That's just basic economics, taken to its logical conclusion, as opposed to the illogical conclusion of politicians and economists who put aesthetics over mathematics.
Fix those (which also implies taking the money out of politics) and the rest will follow.
Corollary, money is and has always been a proxy for political power, in addition to being the raison d'etre of the corporation. Would love to hear your plans for weaning our economy off of money.
It's also ludicrous to suggest that "taking the money out of politics" (as if that was something that could be done) would just fix everything.
And if you think Appalachian coal mining is a "higher quality of life", I suggest sitting down and watching the 1976 documentary Harlan County USA (about violence while striking against coal companies), and Coal Miner's Daughter (a film biopic of country singer Loretta Lynn, who grew up in coal country).
Bang on.
The knock-on effects of this are surprisingly nasty, though. Whole swaths of country identify as mining country. Taking that away from them with economics is an assault on their culture, and the people concerned react like any culture that senses its core is under attack.
You can treat them as something obsolete, a dying beast we can circle like vultures. Or you can find a way to get them off of coal that doesn't involve invalidating how they think of themselves.
It's not something you can prize people away from readily.
I was involved in a software project where management kept wanting to define the company as manufacturing, rather than primarily retail. The only way I could rationalise that is because it gave them an inflated sense of importance about their place in the world.
As a result, they ended up with a software system bigger and more complicated than their business dictated, meaning additional on-going admin and support load.
That's small fry, however, compared to a state's or country's cultural identification, which has the potential for far-reaching destruction.
The modern GOP came out of the turbulence of the 60s. The conservatives are the result of crossing betrayed southern democrats angry about desegregation with western resource interests. It’s part of the machinery of the party.
There's also the sense of abandonment. Coal miners worked and died for generations to provide the energy that made comfortable city life possible. Now when they are no longer needed they get thrown away like an old tool. If liberals actually promoted something other than "leave behind everything/everyone you know and move to the city" they might be more receptive to dropping coal.
>Hillary bragged that she was going to put a lot of miners out of business.
Searching for "hillary coal jobs", it seems your statement is based on a misrepresentation of what she said. (if "politifact" is to be believed)
http://www.politifact.com/truth-o-meter/article/2016/may/10/...
LFTR reactors, if they actually had significant economic potential, wouldn't need incentives. India or China would have gone all-out on them, but the fact is they still require Uranium to get started, and even in theory they aren't much better than what we're currently using for fission-based power.
Ignoring both coal and nuclear is pretty much inevitable, as long as natural gas and renewables stay this cheap or cheaper.
There is considerably less ore mining and refining involved in nuclear compared to renewable, due to the orders of magnitude higher energy density.
It's fallacious reasoning, because by that standard, NOTHING produced by the current society is zero carbon. Nuclear itself is zero carbon, just like wind or solar. But all three require material that could conceivably be produced in a zero carbon / 100% offset regimen. So the correct approach is to push for zero carbon transport, zero carbon cement etc. Or just tax the carbon to get it to a planetary safe level and let the market allocate.
Natural gas will be an integral of the energy mix for the next 50 years at least.
Ironically, it's wind and solar that finished off nuclear power. Renewable energy has high variability in supply, but sells power at zero marginal cost. That means grid demand becomes highly variable during the day.
Nuclear (and coal) are both systems with high capital costs and very low marginal cost. To be cost competitive, they both need to produce power 90%+ of the time to amortize the initial capital. However, with the current variability in demand, they can't get anywhere close to 90% demand from the grid.
This leaves a market opening for peaker plants with very low capital costs, notably natural gas and hydro in the US. Hydro is saturated, and combined with low-cost fuel due to the fracking boom, natural gas is exploding.
Basically, the net result of wind/solar is actually a wash, from an environmental standpoint. That will get better with HVDC interconnects (reduces variability of wind), but in general it is not happy outcome.
And if their nuclear ambitions, in the end, didn't come to a whole lot more than ours did... well, why not? It wasn't "regulation", so there must be other structural factors at work, which may or may not be the same as ours.
They have not gone all in on nuclear and are exploring as many alternatives to coal as they can.
Why does it suggest that?
China has only been seriously trying to cut back on coal for ~10 years.
All it shows is that coal is cheaper than nuclear and that to a rapidly industrializing country cheap is more important than environmentally friendly.
On the other hand the US is shutting down plants and decreasing overall capacity.
China, as you observed, has no qualms about "environmentally friendly", so according to America's nuclear proponents, China should have more nuclear than us, not less, since it's cheaper. This is not the case, ergo their argument is flawed.
Your argument doesn't really make sense.
Nobody is arguing that nuclear is cheaper than dirty coal.
Proponents argue that it's cheap and orders of magnitude more environmentally friendly than burning dirty coal.
China is still very price conscious and are building out nuclear in an effort to reduce pollution - proving that the Chinese do believe nuclear can be done cheaply and safely.
Other problem is the long construction times. As the planning and construction time becomes a larger fraction of the payback time, the economics gets increasing bad. That's a problem for nuclear plants with 10-15 year construction time lines and 30 year payback. Compare with nat gas or solar plants with 2-5 year build outs. Worse nat gas plays back in 5-10 years.
Even if you relaxed the safety regulations, natural gas has an edge with fracking.
I think most of the market burden stems from the regulatory delay and uncertainty. That delay and uncertainty makes it impossible to quickly build plants, regardless of how stringent the engineering specifications. And if you can't quickly build one plant, you can't quickly build ten of them, and you lose the expertise and proficiency needed to build them cost-effectively.
I remember reading an article about the South Korean nuclear industry. At their peak they could build a nuclear power plant quickly, on time, and on budget. Presumably these plants adhered to Western standards. Repetition built project management proficiency and a skilled, specialized workforce.
Ultimately I don't blame the regulatory agencies, per se. I blame the mandate they've been given by a very fearful population. Industry doesn't know what will pass regulatory muster because the regulators are winging it because the public makes safety demands completely divorced from concrete science and engineering.
My takeaway is that if you're going to regulate, you better be darned sure what, why, and how you're going to regulate. If you (i.e. Joe Public, Senator Smith) can't answer those questions, then regulation will prove disastrous. If you can answer those questions well than the true regulatory burden will quickly become apparent and industry will adjust accordingly or exit, without all the confusion, bickering, and wasted resources.
It's like with GMOs: people against GMOs (or proposing strong oversight) can't articulate well why, how, or precisely which aspects of the industry they want to regulate. Which makes it easy for me to vote against propositions purporting to regulate the industry. A poorly articulated solution is no solution at all, and a poorly articulated problem is strong evidence there may not be any problem.
As it stands coal stations produce more nuclear waste than nuclear power plants https://www.scientificamerican.com/article/coal-ash-is-more-...
With electricity, peak demand is king. It doesn’t make sense to build a billion dollar nuclear plant that isn’t needed except for August.
Nuclear seems to be one of those incredibly capital intensive projects where scale is king. If you could build one site as big as you wanted, wherever you wanted, that could sell every watt of power anywhere in the country- maybe that works a lot better for nuclear.
individual entitlements: giving money to slackers, encouraging them to be lazy
entitlements on coal: helping hard working americans get/retain their jobs
not that i agree with this line of logic.
That's fewer than Arby's. That's fewer than people who work in museums.
It's insanity.
https://www.radiotimes.com/news/2016-12-16/the-crown-discove...
I've got a lot of family from southern Appalachia (N GA to WV).
If coal sunsets, America needs to make a promise that we're going to do right by miners. In a bigger, more sustained way than recent token retraining efforts. Something on WPA / TVA scale.
If we made that bargain, and stood by it, then we'd be able to start seriously transitioning away from coal, with broad local political support, today.
And I feel like this is something that we as a country need to get better at anyway, as it's going to happen to a lot of industries in the next 100 years.
After 9/11 the airline industry lost something like 40,000 jobs. We didn't resurrect the WPA then. What makes coal special?
How is it different from steel jobs drying up in Gary IN? Or automobile jobs in Detroit? Or fishing jobs in Maine? Or tobacco jobs in ... wherever tobacco was grown
The Carolinas and Virginia, I think.
And you're right, it's not that different.
The only thing I'd say is that I believe steel jobs were a bit slower of a transition. I believe most of the slide took place in the 60s - 80s as lower cost Japanese steel took off?
Tobacco is also somewhat replaceable. If you were planting it, you can plant other things. So the glide path is a bit easier.
https://data.bls.gov/timeseries/CES1021210001
Set the "from" date back to 1985 (earliest year available in this UI).
There were 170,500 American coal mining jobs in January 1985. When Obama entered office in January 2009, there were 86,400.
The irony is that production of coal seems to have increased (see top graph; https://en.m.wikipedia.org/wiki/Coal_mining_in_the_United_St... ) since 1970.
Goes to show the power of political narrative vs a reality of automation. But I suppose even for the companies it's a lot easier to blame Washington than tell people you bought a $250,000 machine to replace them.
I think that's the Powder River Basin in Wyoming. But that's all strip mining with giant machines. It's more capital and fewer workers.
> But I suppose even for the companies it's a lot easier to blame Washington than tell people you bought a $250,000 machine to replace them.
It's more like: somebody else bought a $250,000 machine to replace them five states away.
In coal dependent regions, the mining jobs create downstream jobs in transportation and general support of mining towns. This means when a mine shuts down, along with it go other local jobs, from gas station attendants to truck drivers and freight train conductors.
But if they're truck drivers, then they should be able to drive trucks elsewhere, for other industries.
So, at least that part of the downstream economy shouldn't be a factor.
Unless, that is, they insist on continuing to be truck drivers for coal mines, and living in the same place that they have always lived. But if they're going to be intransigent, then I don't have a lot of sympathy for them.
Please note, my uncle is a truck driver, and I've heard a lot about the industry from his personal experience. I do actually have a lot of sympathy for truck drivers in general. But this is a transportation industry, and they have to go where the jobs are.
I respect the hell out of anyone who mines coal for a living. It's gotten safer, but it's still a tough job that I'm glad I don't have to do.
I absolutely oppose anything that expands the coal industry.
So how do I square those? Personally, I feel like we as a country owe the folks who did that work maybe a bit more than we would others.
And if that happens to also be a more a practical approach to transitioning our economy off a toxic energy source? So much the better.
The coal industry is a larger portion of the economic activity of the states it's in. The airline industry is diffused across the country. Helping the coal industry is kind-of like gerrymandering.
Coal workers are important because the suburban whites who make up the GOP's voting base identify with them.
That seems to miss the parent poster's main point, which was proposing a way of making progress on this issue.
One such oligarch was just revealed to have written 6 of Trumps excecutive actions on coal energy.
Using those numbers is like saying that only data center support workers work in tech. Every pair of hands at AWS probably supports 1000x people downstream.
Why should I respect these people?
Wow. Sounds like you ought to embrace modernity, specifically the part about tolerance for others who are different from you.
As for the substance of your question: They vote. We're talking several states' worth of voters, who will turn against anybody who advocates your position as a political platform. So, politically, if you want to kill coal, you have to not dead-end these people, no matter what you think of them personally.
And I don’t even want them to become destitute! I just want to help them move on to a better job. Meanwhile they apparently don’t care that they’re dumping poison into the air. Why should I tolerate that?
And what would you regard as signs of "caring"? If they quit their job? In a region with no other jobs, you want them to voluntarily quit to show that they "care"? If not that, what?
The rest of your post is fine. This one sentence, though, is pretty judgmental.
Coal is a terrible industry that is destroying the world. It can't go away quick enough.
[1] https://www.washingtonpost.com/news/wonk/wp/2017/03/31/8-sur...
[2] https://data.bls.gov/timeseries/LNS12000000
[3] http://money.cnn.com/2018/03/16/news/companies/toys-r-us-emp...
We are talking about an ~200,000 person industry, why does the federal government need to go take care of each small industry that gets out-competed?
I could see having a generic program in place for retraining, which does exist [1]. But it's not like journalism, say, which could arguably have an out-sided improvement for the rest of the country above and beyond its business model and is worth saving for its own sake. Coal is highly polluting and prematurely kills ~10,000 people/year in this country [2]. It seems like a rational government should regulate against it, if anything.
[1] https://www.reuters.com/article/us-trump-effect-coal-retrain... [2] https://www.scientificamerican.com/article/the-other-reason-...
1, Realpolitk) Because our democracy gives states power outsized to their population through the Senate, and because there are several purple states along the coal belt.
Consequently, their voters (many of whom are miners or employed because of downstream mine revenue) possess to the political power to force people to listen to them.
2, Moral) In 2014, per capita income for the region was $37k, or about 80% of US. Poverty was 19.7% vs 15.6% for the US [1]. From personal experience, there are still places that feel like 1950. (Also, per capita, the area has been and is disproportionately over-represented in our armed forces)
3, Economically Practical) As others noted, there isn't exactly a humming engine of economic diversity in the region. Heavy industry and mining is vastly overrepresented, which generally means if "the plant" closes the town dies.
4, Cultural) From music to speech to food, there's a distinct culture there. So moving "elsewhere" isn't just a geographic change, but more akin to uprooting thousands of people from New Orleans and dropping them in other cities.
As another commenter suggested, "Why not just move people away?"
Honestly, I'd be fine with this, if it were done humanely.
But screwing people isn't going to win votes (or feel particularly morally righteous). And short of that, we aren't going to get the environmental change we need.
Hell, we could have probably transitioned the entire region off coal for a fraction of the budget we spent on the Iraq War.
Tons of other industries have undergone or will be soon bigger shifts in unemployment. Retail workers have been hit hard by online shopping. Taxi drivers have been hit by Uber and Lyft and the like. Truck drivers will be hit by self-driving trucks. Factory and warehouse workers have been hit by automation, which will only continue.
I don't feel like we "owe" coal miners anything more than we owe other people who are industries facing declines.
That said, I agree with most of what you are saying - technological innovation and other changes are hitting certain groups of people fairly hard and we, as a society, need to do more to help them transition to other careers.
https://www.marketwatch.com/story/looking-for-a-job-these-ci...
I am aware that is essentially dooming West Virginia, but people will then simply have to move. No that is not easy. But if we allow one particular group to claim special rights, then all other groups will have similar requirements and we will end up in a situation where we will never be able to advance the state of the country, or the world.
If we had chosen the "Luddite solution" back in the day, then instead of being obese we would have been starving. Essentially nobody would have learned to read or write, and we would have been happy to have two sets of clothes.
No special rights were due then, no special rights are due today.
We can't just guarantee that they'll get WPA/TVA jobs to do all the construction in the country, without having them be willing and able to move to where the work is.
Moreover, construction is a young persons job. Older people can't work those kinds of jobs, at least not with the same level of efficiency and willingness to kill yourself (sometimes literally).
So approximately zero point zero percent of those miners would be able to actually do those construction jobs, even if they were willing to do so and willing to move close to where the work is.
I'll admit I'm not intimately familiar with modern coal mining.
But from the people I know in the industry (even older) vs who seems to be employable by our state DOT, I'd daresay the number should be a lot higher than ~0.0%.
Job training and community college put coal miners on a new path https://www.pbs.org/newshour/show/job-training-community-col...
The question is, is it to optimistic? As someone who has never been to the region first hand, I'd be curious if it is too idealized.
https://m.youtube.com/watch?v=bVkCDZ4RUIg#
It's a difficult problem, people being who they are. Certainly, there's less public education in the area, but people are difficult to move to new things anyway.
For all the "Well, they should just change" opinions, I try and ask myself what I'd do if (constructed hypothetical) tomorrow it turned out that running computers caused cancer.
Honestly, the reason I'm here instead of living a different life was my grandfather lying his way into the Navy at 17 during WWII, taking advantage of the GI Bill, and getting through graduate school.
Sans that, I'd have been born up in the hills of east Tennessee, and probably never have seen a computer as a child.
Except people in my town never went through the kind of hardship I see the American working class go through because we had already built up extensive institutions to deal with it. We spend something like 10x as much per capita on job retraining for unemployed people. If they can't get new industry going and retraining people for those industries, they use other means like moving government functions to the towns that have been hardest hit. Keeping unemployment low is a very high priority in Norway, in no small part due to the labour party (social democrats) having "work for everybody" as their slogan since the 30s.
I got an American wife, and I really cheered for Bernie Sanders. I had so hoped he could have brought many of the things we have been able to enjoy for decades here in Norway to Americans. Unfortunately he lost, but I think there was movement in the electorate and openness to new ideas like I've never seen before. I had never thought you could get that many votes in the US saying anything positive about socialism.
One of the major 2016 Presidential candidates had a plan to help them [1]. The miners overwhelmingly voted for the other candidate.
[1] http://static.politico.com/b8/90/cbbc9c59413089d87e8d6340f13...
It shows how embedded the powers-that-be are into coal that they can convince the government to waste tax-payer money on propping it up for a little while longer.
Maybe it'll give them a bit more time to continue their divestment process, so their paper value doesn't drop off a cliff once this policy is scrapped.
Even though life expectancy has been dropping across the U.S., here in NYC life expectancy has increased by 3 years over the last fifteen due largely to new policies around home heating fuel and other laws to reduce fine particulate emissions. Sad to see Trump trying his best to take us back in the other direction.
So yes Coal is uneconomic and awful for the environment. However, it is important to recognize the value that it and Nuclear bring as they often have a minimum of 3 months of fuel on-site unlike gas, intermittent renewable, and batteries.
Just saying we don't need any coal shows a definite lack of understanding of the industry and the problem. I work in power system transmission, but have zero connections to either coal or nuclear. My only "skin" in the game is a deep concern for premature coal retirements based off of all the public studies which have been run.
Edit: My memory is a little foggy, but I just double-checked myself and the coal plants in ISO-NE I was thinking about were actually natural gas plants that wouldn't be impacted by loss of pipeline as they were served by a local source. If they had enough of those, you wouldn't need to keep nearly as much coal around. However, I bet they're fairly rare.
Can you explain that parenthetical? I’m at a loss.
Not to mention that using coal extends the deadline on your country's gas reserves, reduces the much-hated fracking etc.