A Better Way to Sell Australian Coal
Michael Robertson. Urban Ecology Australia. 2007.2.20
Comment on Senator Bob Brown’s proposal to phase out Australian coal exports.
Currently, when you buy Australian coal, that’s all you get - coal. But that doesn’t give us much of an advantage over our competitors. We should throw in something extra, like help to “ kick the coal habit”.
Which brings us to Bob Brown.
Some media outlets have recently reported Bob Brown as calling for a ban on Australian coal exports. But did he really say this?
Here’s something he did say:
“ Australia should develop a plan, in the next three years, to reduce and phase out coal exports. ... The nation should rapidly transform to being the world’s largest exporter of solar power technology, other renewable energy options and energy efficiency technology - creating thousands of jobs and a multibillion dollar export income in tandem with the replacement of coal.” (Bob Brown media release 2007.2.9)
My comment:
Transforming the Australian economy into a world leader in coal-substitution technology is a good idea. For one thing it is a more effective way of reducing global carbon emissions than simply banning coal exports (given that Australia doesn’t have a monopoly on this material).
However, Brown’s proposal to phase out exports of Australian coal (whether through prohibition or demand reduction) is beside the point. The point is to phase out global coal consumption, and to do so in a way that doesn’t penalize the Australian economy.
One way to reduce global coal consumption would be to put a levy on Australian coal (whether exported or used locally), and use the money raised to fund the development of coalsubstitution technology. A levy on Australian coal would increase its price, and so push up the world price for coal, which in turn would encourage purchase of coal-substitution technology.
Such a levy might in fact increase demand for Australian coal, by attracting customers away from coal suppliers who invested their income in expanding coal production rather than in developing coal-substitution technology. After all, if you’re dependent on coal but don’t like it, you might as well buy your coal from a country that will help free you from that dependency, not perpetuate it.
In that case, we should prohibit new Australian coal mines. If coal companies want to reinvest their income in projects that will grow their business, then let’s help them transform themselves into coal-substitution companies.
2007.3.9