Re:BlackRock’s decision to dump coal signals what’s next
by hodder on Thursday January 16, 2020 @07:01PM
(#22070461)
There is also a fairly predictable decline curve for coal and shutter dates. I’m not talking about building new plants. That makes no sense I agree (as do the utilities). Existing coal plants absolutely make money as they simply need to cover variable costs.
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Re:BlackRock’s decision to dump coal signals what’s next
by ogre_codes on Thursday January 16, 2020 @07:47PM
(#22070734)
The big difference is for tobacco, the curve is decades long and may continue to decline for decades more. For coal power, it's unlikely to last until the end of the decade.
Smokers gonna smoke, but outside a few specific places, nobody is going to be generating power with coal in 20 years. Unlike smoking, the consumers of coal power are pragmatic and driven by profit.
Re:BlackRock’s decision to dump coal signals what’s next
by hodder on Thursday January 16, 2020 @08:00PM
(#22070810)
The earnings yield is much higher to compensate.
Re:BlackRock’s decision to dump coal signals what’s next
by perl4ever on Friday January 17, 2020 @09:04PM
(#22081682)
Maybe I don't understand what you're saying but it sounds like you're implying a homeostatic mechanism prevents capital from being withdrawn from coal.
If no company or sector could decline due to declining profits, then nothing in the economy would work at all.