World Energy Resources | 2016

WORLD ENERGY COUNCIL | COAL
Coal resource developments in several regions do have significant socio-economic impacts
especially for the cities and communities near the project sites. The following looks at these
benefits.
COMMUNITY IMPACTS FROM TAXES
The taxes that come from coal related activities provide significant revenue for the
government. In 2011, the direct contribution from the US mining activity provided over
US$20 billion in tax payments to all tier of the government - federal, state and local 50 .
In Germany, about US$112 million of tax revenue was collected as a result of the
construction phase of Neurath Units F&G between 2005 and 2011.
China also had tax revenues of about US$19 million and US$65 million annually based on
the on-grid prices for Zhoushan Unit 4 and Ninghai Units 5. For this nation, electricity
consumption is a significant source of tax revenue via a Value Added Tax (VAT) of 17% 51 .
PUBLIC HEALTH AND ENVIRONMENTAL IMPROVEMENT
Cleaner coal technologies can mitigate the present situation by replacing old coal units and
through retrofitting older plants, which will result in emissions reduction. Advanced coal
power plants have better efficiencies and produce fewer emissions than older generation
units. Besides boiler efficiency, new advanced coal units’ employ emissions control
systems that eliminate more than 95% of nitrogen oxide, sulphur dioxide, and particulate
matter. In addition to these air emissions, advanced plants also aid in the reduction of GHG
emissions.
LOWER ELECTRICITY PRICES
Economies benefit from lower electricity prices because of reduced energy costs, but this
also increases industrial competitiveness. Nations that enjoy reduced cost in energy can
manufacture goods at lower prices, thus increasing domestic profits and rise in economic
activity.
The efficiencies of modern coal plants have gone beyond 43%, as evidenced by the
Neurath F and G lignite plants commissioned in August 2012 52 . Charles River Associate
(CRA) estimated that if all German coal was converted overnight to state-of-the-art
technology, German power prices would decrease by 6.8% amounting to consumer savings
of about US$2.53 billion annually 53 . This highlights the negative correlation between
advanced coal technology and lower electricity prices.
50
CIAB (2014). The socio-economic impacts of advanced technology coal-fuelled power stations.
51
https://www.gov.uk/government/publications/exporting-to-china/exporting-to-china
52
https://www.rwe.com/web/cms/mediablob/en/208030/data/12068/3/rwe-power-ag/fuels/kw-neurath-boa-2-
3/Neurath-F-and-G-set-new-benchmarks-Article-by-Dr.-Reinhold-Elsen-RWE-Power-and-Matthias-
Fleischmann-Alstom-published-in-Modern-Power-Systems-June-2008.pdf
53
CIAB (2014). The socio-economic impacts of advanced technology coal-fuelled power stations
36