The previous section provides an analytical framework that can be used to formulate qualitative predictions for non-market issues. In addition, that analytical procedure can help to identify the key stakeholders driving an issue toward its predicted outcome. Consequently, that analytical framework can also be useful for developing and evaluating strategies for influencing non-market issues.
By the end of this lesson, you should be able to...
For a given issue, students will be able to develop recommendations for each of these strategic dimensions, which are based upon the non-market analysis they learned in Lesson 2.
This lesson will take us one week to complete. Please refer to the Calendar in Canvas for specific time frames and due dates. There are a number of required activities in this lesson. The chart below provides an overview of those activities that must be submitted for this lesson. For assignment details, refer to the lesson page noted.
REQUIREMENT |
SUBMITTING YOUR WORK |
---|---|
Read Chapter X in the textbook. | Not submitted |
On-line quiz | This will be submitted via Canvas. |
If you have any questions, please post them to the Comments area that appears at the bottom of this page and all other pages in this lesson. I will check these comments regularly to respond. While you are on a page, feel free to go through the comments and post your own responses if you, too, are able to help out a classmate.
Preparation
Coal mining employs basically the same traditional mining techniques used in hard rock mining - underground and surface ("strip") mining. One of the more efficient but environmentally destructive methods for mining coal involves "strip" mining. This technique is analogous to the open pit mining techniques used in hard rock mining whereby the soil and rock above the coal seam are removed to expose the seam. The seam is then blasted and the coal is scooped up by huge front end loaders or electric shovels and transported to a coal processing plant. These coal preparation plants use a variety of physical (e.g., screening) and chemical (e.g., flotation using high gravity liquids) methods to separate the raw coal from all of the non-combustible waste rock and minerals (e.g., pyrite). The coarser waste rock is piled up adjacent to the mined out area and the finer coal tailings coming from the preparation plant are discharged as a thick slurry into a man-made impoundment. After coal mining operations have ceased, the mine is reclaimed by dumping the waste rock into the pit, regrading the area to approximate the original contours of the land and then replanting the area using native grasses and trees. Source for this para, direct quote from US EPA glossary, here http://cfpub.epa.gov/npdes/glossary.cfm [1] term, "Mining (Coal)"
An impoundment is "The entire structure used for coal slurry waste disposal, including the embankment, basin, beach, pool, and slurry." (source: National Research Council, 2002 this book: Coal waste impoundments: risks, responses, and alternatives, by National Research Council (U.S.). Committee on Coal Waste Impoundments) See http://www.nap.edu/openbook.php?isbn=030908251X&page=213 [2]
During the process of mining and cleaning coal, waste is created and must be permanently disposed of in an impoundment. Preparation of coal, also called washing, is how non-combustible materials are removed from the mine. As the coal is washed, waste is created and classified as either course refuse or fine refuse. Larger materials such as rocks and pieces of coal are defined as course refuse. Slurry, a combination of silt, dust, water, bits of coal and clay particles is considered fine refuse, and is the most commonly disposed of material held in an impoundment. Between 20 to 50 percent of the material received at a coal preparation plant may be rejected and housed in impoundments (National Research Council, 2002). The coarse refuse is used to construct the impoundment dam, which then holds the fine refuse or slurry, along with any chemicals used to wash and treat the coal at the coal preparation plant. Directly from http://www.coalimpoundment.org/aboutimpoundments/facts.asp [3] What is an Impoundment?
Coal preparation, or “washing,” also causes water pollution when chemicals and water are used to separate impurities from mined coal. Up to 90 million gallons of coal preparation slurry are produced every year in the U.S., most of which are stored in large waste pits known as impoundments. Impoundments leak into local water supplies and can even burst dramatically, sending millions of gallons of wastes barreling down in mudflows and destroying property and lives. (The SIerra Club description: www.sierraclub.org/coal/downloads/0508-coal-report-fact-sheet.pdf [4])
Notes and possible exercises:
Coal preparation/processing and related topics (slurry, impoundments) not mentioned on pro-coal sites that I can find. Except here, http://www.mine-engineer.com/mining/coalprep.htm [5]. Activist group here http://www.sludgesafety.org/coal_sludge.html [6]
http://www.coalimpoundment.org/aboutimpoundments/facts.asp [3]
Methane
http://www.worldcoal.org/coal/coal-seam-methane/ [7]
http://www.tri-starpetroleum.com.au/02_what_is_csm/what_csm.htm [8] from an oil&gas company
http://www.terrapinn.com/2011/csm/the-big-idea.stm [9] Coal Seam Methane World 2011
http://www.epa.gov/coalbed/faq.html [10] FAQs, including coalbed methane vs coal mine methane
http://www.encana.com/news/topics/cbm-groundwater/ [11] coalbed methane and water from a natural gas co. (canadian)
water quality and safety
Safety
http://www.nytimes.com/2011/01/20/us/20mine.html?partner=rss&emc=rss [12] Fatal Mine Blast Was Preventable, Report Says
Transport
http://www.worldcoal.org/coal/market-amp-transportation/ [13] Market & Transportation overview from World Coal Association
http://www.ucsusa.org/clean_energy/technology_and_impacts/energy_technol... [14] How Coal Works w Transportation section
"Simply moving coal from one place to another has a significant environmental impact, with coal transportation accounting for about half of U.S. freight train traffic. These trains, as well as trucks and barges that transport coal, run on diesel—a major source of nitrogen oxide and soot." In envionmental section of above source
http://www.eenews.net/public/Greenwire/2010/01/25/2 [15] Railroads, utilities clash over dust from coal trains
Combustion
Coal Trade (section directly from World Energy Council, 2010 Survey of Energy Resources, http://www.worldenergy.org/publications/3040.asp [16]
Coal is traded around the world, being shipped huge distances by sea to reach markets. Over the last twenty years seaborne trade in steam coal has increased on average by about 7% each year with seaborne coking coal trade increasing by 1.6% a year. Overall international trade in coal reached 938 million tonnes in 2008; while this is a significant amount of coal it still only accounts for about 17% of total coal consumed, as most is still used in the country in which it is produced.
Transportation costs account for a large share of the total delivered price of coal, therefore international trade in steam coal is effectively divided into two regional markets:
Australia is the world’s largest coal exporter. It shipped 261 million tonnes of hard coal in 2008, out of its total production of 332 million tonnes. Australia is also the largest supplier of coking coal, accounting for 53% of world exports.
Transporting Coal
Paras below excerpted directly from http://www.worldcoal.org/coal/market-amp-transportation/ [13]
The way that coal is transported to where it will be used depends on the distance to be covered. Coal is generally transported by conveyor or truck over short distances. Trains and barges are used for longer distances within domestic markets, or alternatively coal can be mixed with water to form a coal slurry and transported through a pipeline.
Overall international trade in coal reached 941Mt in 2009; while this is a significant amount of coal it still only accounts for about 16% of total coal consumed. Most coal is used in the country in which it is produced.
Transportation costs account for a large share of the total delivered price of coal, therefore international trade in steam coal is effectively divided into two regional markets
Australia is the world’s largest coal exporter. It exported over 259Mt of hard coal in 2009, out of its total production of 335Mt. International coking coal trade is limited. Australia is also the largest supplier of coking coal, accounting for 54% of world exports. The USA and Canada are significant exporters and Indonesia is emerging as an important supplier.
In the USA
"Simply moving coal from one place to another has a significant environmental impact, with coal transportation accounting for about half of U.S. freight train traffic. These trains, as well as trucks and barges that transport coal, run on diesel—a major source of nitrogen oxide and soot." (Union of Concerned Scientists [14])
The Economist [17] reports that coal is the biggest single rail cargo in the USA, accounting for 45% by volume and 23% by value. More than 70% of coal transport is by rail.
In the USA, 24% of the total price of coal to electricity power plants was for transportation costs from the mine. (2008, US Department of Energy [18])
Notes and possilbe exercises:
http://www.eenews.net/public/Greenwire/2010/01/25/2 [15] Railroads, utilities clash over dust from coal trains
http://www.ucsusa.org/clean_energy/technology_and_impacts/energy_technol... [14] How Coal Works w Transportation section union of concerned scientists
http://leeuniversal.blogspot.com/2011/03/shaanxi-to-build-chinas-first-c... [19] China to build first coal slurry pipeline mar 2011
http://itsgettinghotinhere.org/2010/01/08/victory-for-black-mesa/ [20] black mesa coal plan permit denied, native tribe is pleased, later plant destroyed, slurry pipeline no longer needed/used
The term "strategy" can best be understood in the context of "goals" and "tactics." Goals (and/or objectives) are the measurable outcomes that serve a purpose (or mission), for an organization or an individual. Tactics are the specific actions executed to achieve goals. And strategies make sure that tactics serve goals–strategies are the plans used to identify, organize, and focus tactics to achieve goals (thereby serving a purpose.)
Consider our example from the previous lesson [check to see that this example still is in the previous lesson], wherein you are trying to site a transmission line for your planned solar array project in the desert. Your mission may be to establish a profitable renewable energy organization utilizing solar-electric technology. In order to serve your mission, one of your goals is to install a reliable solar array at relatively low cost. In order to balance several elements of that goal (i.e., reliable and low-cost), your strategy is to purchase solar panels that are one generation older than the state of the art (for cost savings and reliability.) And you’ve also decided to employ a construction firm experienced in solar array installations utilizing an incentive-based contract (again, to balance reliability with cost savings.) This strategy helps to identify the tactics to achieve your objective.
One of your tactics could be to hire a solar technology consultant to prepare a report summarizing the age, price, and reliability of solar technologies currently available in the marketplace. Another tactic could be to hire a law firm experienced in negotiating incentive-based contracts. And yet another could be to require that all bids for the installation contract include a list of previous solar installations, so that you can judge prospective contractors’ levels of experience. Your market-based strategy is implemented through these market-based tactics in order to achieve your goal to install a reliable solar array at relatively low cost.
An alternative strategy may necessitate non-market tactics. For example, your goal could also be pursued through a strategy to attract government subsidies, grants, or loans. Indeed, your strategy could be to organize as a not-for-profit corporation. These strategies can be implemented through a variety of non-market tactics, such as applying for specific grants and building relationships with granting and regulatory authorities. These are referred to as non-market strategies because they are intended to achieve resource allocations (i.e., in this case, allocation of grants and permits) through social and political processes that differ from market-mediated economic decision making.
As discussed in the previous lesson, another goal necessary to achieving your mission is to site and install a relatively direct and cost-effective transmission line connecting your solar array to the grid. Can you think of alternative strategies for achieving this goal? Can you distinguish between market and non-market tactics that may be employed to implement those strategies?
[note: TWO QUESTIONS ABOVE COULD BE USED AS IN-LECTURE EXERCISE. I COULD DRAFT A FEW BULLETS SUGGESTING ONE SOLUTION TO THOSE QUESTIONS. E.G. “Purchase privately-owned parcels of land to construct transmission corridor from solar array to grid. This would be a relatively market-based strategy that could be implemented through discreet land purchases. Alternatively, you could purchase only enough land to provide a right-of-way to the nature preserve boundary (i.e. the nature preserve that we imagined was a shortcut to the nearest opportunity to connect to the grid.) Since this would require regulatory approval, and NGO’s would have more standing to protest, this strategy would be considered a relatively non-market alternative. This strategy would necessitate tactics such as lobbying congressmen, employing technical experts in order to increase informal authority in the discussion about whether you would damage the preserve, etc.]
The framework for non-market issue analysis is useful for identifying non-market risks. An issue analysis indicates whether an issue is tending toward a desirable or an undesirable outcome. The analysis also suggests which stakeholders are particularly influential in determining the likely outcome, and why those stakeholders are influential. In addition, the analysis may suggest how less influential stakeholders can play a key role in the issue outcome.
The primary objective of a non-market issue analysis is to provide a qualitative prediction about the resolution toward which an issue is tending. In the case of our electrical transmission line siting example, the analysis may be structured to indicate whether the project is likely to receive regulatory approval to cross the nature preserve. An analysis indicating overwhelming influence in favor of a particular issue outcome suggests relatively low risk for achieving that outcome. Alternatively, an analysis indicating that influence is more balanced among alternative issue outcomes suggests greater risk of realizing any particular outcome.
The issue analysis also indicates which stakeholders are most influential in determining an issue outcome. Moreover, the analysis suggests why particular stakeholders may be more or less influential; be it because they perceive the issue as highly relevant to their interests, because they are more authoritative in bargaining for the issue outcome, or otherwise. Consequently, an issue analysis helps to identify stakeholders for which changes in influence is more likely to result in a change in the likely issue outcome.
Similarly, the issue analysis can be used to identify seemingly less influential stakeholders. Counterfactual variation in various determinants of influence is useful for identifying less-influential stakeholders that increase the uncertainty of realizing the likely issue outcome.
[Stevie: Look for some images for this, or possibly make some informatonal graphs of some kind to indicate the possible ways things could trend...]
Information obtained from our issue analysis framework can also be used to formulate non-market strategy. A non-market strategy includes four basic dimensions:
Let's take a moment to look at each of these.
Given the foregoing strategic and issue analyses, have you selected an issue position that is not only congruent with organizational objective, but also feasible? That is, the bargaining problem modeled in the issue analysis stage provides some guidance/idea about the range of feasible outcomes. If a desired outcome is feasible, then there exists some scope to influence the bargain in a way to increase the likelihood of that desired outcome. But if the desired outcome is not feasible then resources expended to influence the outcome are simply wasted. In this case, an organization should consider modifying it’s desired position, or abandoning attempts to influence the issue.
There are two types of influence opportunities--direct and indirect. Each of these is organized around some central questions as listed below.
Direct
Please Note: We don’t propose tactics to substantively affect organizational "relevance" or "resolve" because they are determined by the organization’s broader goals.
Indirect
Timing Stakeholder Interactions
Strategic Response
In this lesson we introduced the concept of....
At this point, you should be able to perform the following tasks:
If you log on to Canvas you will find an on-line multiple choice quiz, Quiz #X. Complete that by the date noted on the calendar tab in Canvas.
You have reached the end of Lesson X! Double-check the list of requirements on the first page of this lesson to make sure you have completed all of the activities listed there.
Uses of Coal
Entire page from World Coal Association http://www.worldcoal.org/coal/uses-of-coal/ [21]
Coal has many important uses worldwide. The most significant uses are in electricity generation, steel production, cement manufacturing and as a liquid fuel. Around 5.9 billion tonnes of hard coal were used worldwide last year and 909 million tonnes of brown coal. Since 2000, global coal consumption has grown faster than any other fuel. The five largest coal users - China, USA, India, Japan and South Africa - account for 82% of total global coal use.
Different types of coal have different uses. Steam coal - also known as thermal coal - is mainly used in power generation. Coking coal - also known as metallurgical coal - is mainly used in steel production.
The biggest market for coal is Asia, which currently accounts for over 65% of global coal consumption; although China is responsible for a significant proportion of this. Many countries do not have natural energy resources sufficient to cover their energy needs, and therefore need to import energy to help meet their requirements. Japan, Chinese Taipei and Korea, for example, import significant quantities of steam coal for electricity generation and coking coal for steel production.
Other important users of coal include alumina refineries, paper manufacturers, and the chemical and pharmaceutical industries. Several chemical products can be produced from the by-products of coal. Refined coal tar is used in the manufacture of chemicals, such as creosote oil, naphthalene, phenol, and benzene. Ammonia gas recovered from coke ovens is used to manufacture ammonia salts, nitric acid and agricultural fertilisers. Thousands of different products have coal or coal by-products as components: soap, aspirins, solvents, dyes, plastics and fibres, such as rayon and nylon. Coal is also an essential ingredient in the production of specialist products:
http://www.eia.doe.gov/oiaf/ieo/pdf/coal.pdf international [22] coal consumption data and projections
Links
[1] http://cfpub.epa.gov/npdes/glossary.cfm
[2] http://www.nap.edu/openbook.php?isbn=030908251X&page=213
[3] http://www.coalimpoundment.org/aboutimpoundments/facts.asp
[4] http://www.sierraclub.org/coal/downloads/0508-coal-report-fact-sheet.pdf
[5] http://www.mine-engineer.com/mining/coalprep.htm
[6] http://www.sludgesafety.org/coal_sludge.html
[7] http://www.worldcoal.org/coal/coal-seam-methane/
[8] http://www.tri-starpetroleum.com.au/02_what_is_csm/what_csm.htm
[9] http://www.terrapinn.com/2011/csm/the-big-idea.stm
[10] http://www.epa.gov/coalbed/faq.html
[11] http://www.encana.com/news/topics/cbm-groundwater/
[12] http://www.nytimes.com/2011/01/20/us/20mine.html?partner=rss&emc=rss
[13] http://www.worldcoal.org/coal/market-amp-transportation/
[14] http://www.ucsusa.org/clean_energy/technology_and_impacts/energy_technologies/how-coal-works.html#v_EIA_2007_Coal_distribution_data
[15] http://www.eenews.net/public/Greenwire/2010/01/25/2
[16] http://www.worldenergy.org/publications/3040.asp
[17] http://www.economist.com/node/16636101
[18] http://www.eia.doe.gov/energyexplained/index.cfm?page=coal_prices
[19] http://leeuniversal.blogspot.com/2011/03/shaanxi-to-build-chinas-first-coal.html
[20] http://itsgettinghotinhere.org/2010/01/08/victory-for-black-mesa/
[21] http://www.worldcoal.org/coal/uses-of-coal/
[22] http://www.eia.doe.gov/oiaf/ieo/pdf/coal.pdf%20international