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by chumali
2556 days ago
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It's a combination of reasons present to different degrees depending on the nation in question. These include: The political fallout of allowing these industries to fail (coal production and power generation make up a large portion of economic activity in many rural regions, with workers in these industries having little transferable skills.) Strong protectionist incentives given that coal power is relatively cheap and can enable lower costs in energy intensive industries such as steel manufacturing. Security of supply - having some domestic capacity is always preferable to being totally reliant on imports. Opportunity cost - emissions tariffs have generally been on the increase so it makes sense to pollute whilst it's still relatively cheap. |
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With an ever-shrinking share of the market, coal is no longer financially sustainable - the stations are only used in times of absolute need. They are usually off, but the government pays to keep them available.