New researcher explains how and why rail transportation companies have the power to reduce the effectiveness of carbon taxes imposed on coal-fired energy plants.
if US climate policies further disadvantage coal in favour of cleaner energy sources, new research has found., University of Maryland economist Louis Preonas explains how and why rail transportation companies have the power to reduce the effectiveness of“These findings underscore the importance of looking at the whole fossil fuel supply chain,” Preonas said in a media statement.
By analyzing data on coal deliveries, rail carrier use of the US rail network and hourly energy generation from, Preonas showed that as competition from natural gas forced coal-fired plants to reduce electricity prices, railroad companies reduced their coal transportation fees. By absorbing some of the cost difference between coal and natural gas, the railroads propped up the coal market to avoid losing business.
Preonas also showed that railroads can only absorb a carbon tax for certain facilities. About 44% of US coal-fired plants are served by a single railroad. Those plants are most reliant on their rail carrier, which means those carriers have higher profit margins and are better positioned to reduce costs to keep a coal plant operational.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New Report: Texas Among Top 5 States for New Business GrowthA new report shows record-breaking business growth nationwide and Texas, with its booming population growth, is among the states leading the pack.
Read more »
PrintWatch: Justice Society of America & New Golden Age Get New PrintsDC Comics' New Golden Age line expands with launches of Wesley Dodds: The Sandman, Jay Garrick: The Flash, and Alan Scott: Green Lantern
Read more »
Netflix new releases: 7 brand new titles you don't want to miss next weekA closer look at seven of the biggest and best new Netflix releases coming to the streaming service next week, including a pair of HBO series.
Read more »
New iPhone 15, iPhone 15 Pro Exclusive Details All-New Apple UpgradesThe last secrets of Apple's iPhone 15 and iPhone 15 Pro release have been revealed...
Read more »
Narendra Modi’s New New DelhiA multibillion-dollar revamp of India’s capital complex reflects the Prime Minister’s vision for the country’s future—and what he wants to erase from its past.
Read more »