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There is also a fairly predictable decline curve for coal and shutter dates. I’m not talking about building new plants. That makes no sense I agree (as do the u
by hodder 7y ago
There is also a fairly predictable decline curve for coal and shutter dates. I’m not talking about building new plants. That makes no sense I agree (as do the utilities). Existing coal plants absolutely make money as they simply need to cover variable costs.
- ogre_codes 7y agoThe big difference is for tobacco, the curve is decades long and may continue to decline for decades more. For coal power, it's unlikely to last until the end of the decade. Smokers gonna smoke, but outside a few specific places, nobody is going to be generating power with coal in 20 years. Unlike smoking, the consumers of coal power are pragmatic and driven by profit.
- hodder 7y agoThe earnings yield is much higher to compensate.
- perl4ever 7y agoMaybe I don't understand what you're saying but it sounds like you're implying a homeostatic mechanism prevents capital from being withdrawn from coal. If no company or sector could decline due to declining profits, then nothing in the economy would work at all.