Is America ready to focus on Canada's main dirty energy export to the rest of the world?
Will coal exports abroad offset hard-won carbon reductions at home? | Energy Institute at HAAS
...Stanford economist and Energy Institute affiliate Frank Wolak puts forward a different view. Frank and co-authors have been analyzing the likely emissions impacts of expanding U.S. coal exports to Asia using an economic model of global coal markets. This research is finding that increasing domestic coal exports to China could reduce GHG emissions. The basic argument is as follows. Because China has very little natural gas-fired generation and highly inelastic demand for coal, U.S. exports of coal to China will substitute for other coal. Selling U.S. coal to China could raise coal prices in the U.S. and Europe (a major importer of U.S. coal). In both of these regions there is flexible natural gas fired capacity capable of substituting for coal in the production of electricity. This fuel switching would reduce greenhouse gas emissions.Ahhhh ... what?