Fossil fuel industry development in the 21^st century: a case of coal

¹ Department of Agricultural and Resource Economics, University of California, Berkeley, Giannini Hall, CA 94720 Berkeley, United States
² Centre for Energy Studies, Prague Business School, Werichova str. 1145/29, 15200 Prague, Czech Republic
³ Federal State Budgetary Educational Institution of Higher Education “Kuban State Agrarian University named after I. T. Trubilin”, Kalinina str. 13, 350044 Krasnodar, Russian Federation

^* Corresponding author: strielkowski@berkeley.edu

Abstract

Our article analyses the prospects of coal industry development in the 21^st century. It is apparent that the share of coal in the world’s total energy mix is shrinking as it is replaced by natural gas, renewables, and other forms of energy production. In the same time, countries like China, Russia, but also Poland are dependent on coal as the major fuel for generating their electricity. Quite remarkably, China is using more coal to generate electricity for powering its growing fleet of electric vehicles and transport. This cycle needs to be broken in order to ensure the full transition to the renewable energy future and reducing the burden on the climate and global warming. We argue that the shift away from coal to the renewable energy is driven mainly by the growth of green energy policies and supporting actions induced by the political forces. However, it might still remain the major source of power generation in less-developed and developing economies.