NEW The Liberal West Coast and the Logistics of Exporting U.S Coal to Asia READ HERE

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NEW The Liberal West Coast and the Logistics of Exporting U.S Coal to Asia READ HERE

Suppose that you own a Montana coal mine and you have millions of tons of coal that you would like to sell to Asia's energy hungry cities.  As the U.S environmental rules discourage new coal fired power plants, you need to find new customers and send them the product.  You can't email this coal to Asia.   A major logistics challenge is how to cheaply ship the coal to the final consumers in Asia.  Railroads within the U.S to an export terminal would do the trick but which communities in liberal Oregon, Washington and California will be open minded about allowing railroad tracks to cut their communities and to have the noise from the trains?   Given heavy land use regulation in these liberal states, will the coal mines be able to find the path of least resistance to conduct their profitable trade with Asia?  The coal mine consultants should be super-imposing political maps of voter registrations on to their different routes to identify train paths and potential export terminal hubs to find such "sweet spots".  For some details about the challenge, read this and this.   The interesting economics here is that boycotts usually don't work because the seller can always sell the product to someone else but in this case, liberal environmentalists are sitting on key logistical pieces of real estate and their choice not to zone out this industrial activity sharply raises the costs to the potential coal exporters.    The coal industry is countering that at least on local air pollution criteria that Montana's coal is cleaner than what Asia would burn if they can't access Montana's coal.  So, this claim posits that the boycott will lead to worse local air pollution in Asia.  But, U.S environmentalists don't care about that, they care about global carbon emissions and believe that a ton of coal burned is a ton of coal and thus want the Montana coal to remain in the ground.


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