Juan Cole: Global Outrage at Dirty Coal Threatens Investors' Profits
http://readersupportednews.org/opinion2/271-38/20579-focus-global-outrage-at-dirty-coal-threatens-investors-profits-
The divestment movement on US college campuses against Big Carbon (coal, oil and gas) signals more than just the arrival of a new, determined and idealistic generation of students. It is a harbinger of danger for investors.
In addition to the keen competition thermal coal is facing as a source for electricity generation from fracked natural gas and from wind turbines, coal in particular faces a major public relations problem. It is the dirtiest way of producing electricity, causing lung problems and probably contributing to autism via mercury emissions, and it is the major cause of global warming.
The value of coal stocks is to outward seeming backed by trillions of dollars in coal reserves, but what if that substance is actually worthless? Coal is already being shorted by a major brokerage, which points out that even heavily coal-dependent China plans to move away from the fuel because of pollution concerns (like that coal plants are making the air thick as pea soup and giving small children lung cancer).
Canada's major Ontario province (as populous as Illinois) is banning coal plants, with the last one to be closed by the end of this year. Wind, nuclear and natural gas have taken coal's place. Wind and nuclear do not produce C02, and natural gas produces about half as much as coal. The feed-in tariff has also been important in encouraging renewables.