New research has found that phasing out the use of coal through the use of renewable energy would be good for the society. The study, which was carried out by researchers at the Imperial College School of Business, stated that the transition to green energy from coal would result in about $77.9 trillion in benefits for the society. These benefits include decreased harm to people’s health and individuals dealing with less fallout from climate change.
The investigators calculated the social benefit from phasing out coal and the cost of replacing coal with green energies to determine an approximation of the net gain to be obtained from the green energy transition. The net gain from the transition would be equal to roughly $78 trillion until the century’s end, which is equivalent to nearly 1.2% of the international GDP per annum during the period. This represents a net gain of $55 per every ton of avoided emissions from coal and about $125 per every ton of coal.
This research was coauthored by Professor Patrick Bolton of economics and finance from the Center for Climate Finance and Investment.
The scientists took account of the capital spending costs of setting up a green-energy capacity that’s equal to that of burning coal as well as the compensation for coal firms that will suffer economic loss, in order to determine the total cost of transitioning to the use of renewable energy.
The current social benefit value to be generated from the transition to the use of renewable resources is determined through the estimation of the volume of avoided coal emissions and by applying a price to said emissions. Bolton stated that the study discovered a great economic benefit from eliminating the use of coal, noting that their analysis had found that the gain from renewable energy investments exceeded the cost.
This study was initiated by University of Oxford’s Alissa M. Kleinnijenhuis of the Institute for New Economic Thinking and the Stanford Institute for Economic Policy Research as well as IMF’s Tobias Adrian.
Adrian, the director of the monetary and capital markets department at IMF as well as a financial counselor, stated that the study’s analysis had demonstrated that the economic benefits of phasing out coal were notable enough to continue calling for international agreements that would unbridle the power of the capital markets. He added that phasing out the use of coal would also help limit the increase in global temperature to 1.5o C.
While the prevailing consensus is that coal needs to be phased out, the extractors of this commodity, including Peabody Energy Corporation (NYSE: BTU), are seeing increased demand for coal due to the ongoing energy crisis around the world.
About MiningNewsWire
MiningNewsWire (MNW) is a specialized communications platform focused on developments and opportunities in the global resources sector. The company provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, MNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MNW brings its clients unparalleled visibility, recognition and brand awareness. MNW is where news, content and information converge.
To receive SMS text alerts from MiningNewsWire, text “BigHole” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.miningnewswire.com
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.miningnewswire.com/Disclaimer
MiningNewsWire
Los Angeles, California
www.miningnewswire.com
310.299.1717 Office
Editor@MiningNewsWire.com
MiningNewsWire is part of the InvestorBrandNetwork.
