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North American Free Trade: Another Challenge to Coal

Richard L. Gordon

Year: 1993
Volume: Volume14
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol14-No3-7
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Abstract:
Since trade in coal between the United States and Canada was never restricted and since the prospects for U. S.-Mexican coal trade are small, an), effects of NAFTA will be indirect. Changes in gas and electricity trade might arise. The uncertainties are such that even the direction of the indirect impacts, is unclear. Thus, it would be folly to predict the magnitudes. NAFTA then may prove the smallest of many disruptive influences acting on coal markets.



Emerging Environmental Markets: Improving the Competitiveness of Natural Gas

Janie M. Chermak

Year: 1994
Volume: Volume15
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol15-No3-5
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Abstract:
Current U.S. regulations focus on market approaches to reduce SO2, NOx, and CO2 pollution, allowing affected firms to choose the least-cost compliance alternative. Natural gas, a relatively benign fuel from an environmental perspective, could realize a substantial increase in demand if it is competitive. The viability of gas as an alternative has been questioned due to high forecast price and unstable supply. This paper assesses potential efficiency gains in the completion and production of natural gas wells which may lower production costs and increase recoverable reserves. Coupled with the premium that can be paid for its environmentally desirable qualities, gas can potentially be a feasible alternative. However, the window of opportunity is limited, because many industries, such as electric power generation, require decisions involving up-front capital expenditures that lock the firm into a specific compliance mechanism and fuel.





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