Econ 101: Coal and China


China is reporting that the nation is experiencing localized brown outs. Cities are without electric power.

Why?

Because power plants don’t have coal to make electricity.

Why?

No one is mining coal. No money in it.

Why?

The Chinese government mandates coal below market rates.

Econ 101.

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5 comments
  1. Alan Scott said:

    pino,

    China maybe having coal related brown outs but they have captured the manufacturing for solar and wind turbines. So why aren’t their green toys preventing the brownouts? As our friend BH noted Evergreen Solar is moving to China.

    Green is all about harvesting government handouts and not about producing cost effective energy. And now another Liberal argument about green jobs is shot down.

    I think it is funny that Massachusetts has wasted $43 million to send technology and jobs to China.

  2. pino said:

    So why aren’t their green toys preventing the brownouts?

    There is no source of energy yet invented that’s as cheap, easy and powerful as fossil fuels. It will be a long time before the price of such energy is high enough to mobilize alternative variants.

  3. Alan Scott said:

    pino,

    But our Liberal friends want to raise the price of energy to make their green technology competitive. It is beyond their understanding that if you raise the cost of energy you lose jobs and economic growth.

  4. pino said:

    But our Liberal friends want to raise the price of energy to make their green technology competitive.

    I mentioned in an earlier post with Scott that if the Green folks were serious about taxation as a means to reduce CO2, they should do so in a revenue neutral way. That is, make the money brought IN on CO2 taxes be the same as the tax cuts on, say, labor.

  5. Alan Scott said:

    pino,

    Here is another example of Liberal stupidity. California, ground zero for energy and global warming idiocy wants to discourage electricity use by raising electric rates, while at the same time encouraging electric cars. They seem to be conflicted.

    http://latimesblogs.latimes.com/greenspace/2011/01/california-electricity-pricing-threatens-plug-in-hybrid-affordability.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+GreenspaceEnvironmentBlog+%28Greenspace%29

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