Investing in Energy: A Primer on the Economics of the Energy Industry

Concluding Thoughts

Coal demand will remain robust. There aren't economically attractive fuel source alternatives other than, perhaps, natural gas. Much of the coal demand will emanate from non-OECD countries. OECD countries will continue to reduce use of coal. Future demand will continue to be propelled by emerging-market growth. China and India are still projected to be substantial consumers of coal (see Table 21.3).

It is not yet clear to what extent clean coal technology will penetrate the coal-based power-generation industry. The costs of implementing clean-coal systems must be economically viable. With energy infrastructure project costs to upgrade coal-based power generation to clean coal in the US$2 billion range, it is conceivable that ...