Note
Coal Claws Back
In his State of the Union address on Tuesday, President Obama welcomed the environmental benefits of low-cost natural gas, noting that US CO2 emissions have declined sharply over the past four years. Indeed, coal’s share of US electricity generation fell to 33% in April 2012, the lowest level seen in decades, thanks in large part to cheap natural gas, and US CO2 emissions in the first half of 2012 were 13% below 2005 levels. But as gas prices have risen in recent months, so has demand for coal for power generation. Absent new policy, the recent drop in emissions has likely run its course.