Post
by Speaker to Animals » Wed Jan 31, 2018 8:42 am
Capps, please actually try to understand what I am writing here (this is an important concept and one that a few people here don't want to accept for ideological reasons, but is very real).
The notion that "the market" will converge on the optimal solution is a dogmatic expression of faith that is refuted by the coal industry itself. This libertarian Mammon-worshiping ideology (it's more like a religion) believes in the market like another man might believe in any dogma of Christianity. But this one is readily refuted simply by looking at the coal industry and the very proliferation of coalfire plants.
Coal is one of the least optimal solutions the market could possibly converge upon. When you break it down, coal is far more costly than other forms of energy. This is especially true when you consider the environmental damage inflicted by coal mining, the health damage to the miners, and the tens of thousands of annual deaths of Americans due to lung cancer caused by coalfire plants. But for the utilities and the mining companies, it's most profitable. It's very profitable because they don't have to pay the costs of all the negative externalities they inflict on Americans.
It's like how Walmart indirectly receives subsidies for their labor force by paying them so low that tax payers have to pick up the slack with welfare and food assistance. That's also a negative externality whereby Walmart sloughs off the costs of their business onto innocent people (usually society at large since the costs are almost always spread out to all tax payers).
Utility companies don't pay for the lung cancers they inflict on thousands of Americans every year. They don't pay for the pollution they dump into our atmosphere and water. Mining companies don't really pay for the runoff into the local water supply, or the fact that they destroy the landscape itself by removing mountaintops and creating toxic holes in the ground.
"Clean coal" is a euphemism for "mitigating all the massive externalities of burning coal for energy". The only way to do that and make it profitable for the utility companies is to subsidize all the technology used to trap, collect, and dispose of the pollutants. Otherwise, if you force the utility companies to pay for that, and especially if you force them to pay for the negative externalities they impose upon the surrounding communities, then they would switch to another form of energy. This would bankrupt the coal mining companies. It would put half of Appalachia out of work too. So the government tries to subsidize the costs of mitigating the negative externalities in order to artificially make coal more profitable that mining companies stay in business and the coal workers don't sink further into economic ruin. It's literally a subsidized jobs program and gibs handout to industries no different than Obama's green energy initiative.
The market does not always arrive at the most cost-efficient solution to an economic problem because of negative externalities. This is a pretty good example of that in practice and it's an example of the government trying to artificially prop up a bad industry instead of just letting it die on its own by forcing them to simply pay for their own negative externalities instead of making tax payers do that.