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Full cost accounting for the life cycle of coal

Research or Whitepaper
Valuation, Analysis, BCA   
Each stage in the life cycle of coal—extraction, transport, processing, and combustion—generates a waste stream and carries multiple hazards for health and the environment. These costs are external to the coal industry and are thus often considered “externalities.” We estimate that the life cycle effects of coal and the waste stream generated are costing the U.S. public a third to over one-half of a trillion dollars annually. Many of these so-called externalities are, moreover, cumulative. Accounting for the damages conservatively doubles to triples the price of electricity from coal per kWh generated, making wind, solar, and other forms of non-fossil fuel power generation, along with investments in efficiency and electricity conservation methods, economically competitive. We focus on Appalachia, though coal is mined in other regions of the United States and is burned throughout the world. This paper tabulates a wide range of costs associated with the full life cycle of coal, separating those that are quantifiable and monetizable; those that are quantifiable, but difficult to monetize; and those that are qualitative.