What level of extraction tax on coal would cause electric companies to switch to solar/wind power in order to reduce costs? What happens to those numbers if we add energy storage systems to permit 24 hour operation?



  1. 0 Votes

    You could tax producers until it is not profitable for them to use certain sources, but you would also simultaneously make their products extremely expensive for end users – something they would not likely accept, nor would politicians who wish to keep their jobs. To compete, solar and wind would have to provide equivalent revenue to producing companies; bottom line is always economics.

    • 0 Votes

      We are not taxing electricy producers. We are taxing fossil carbon atoms at the point of extraction or import, to be passed on to the electricity producers in the price of fossil fuel. We are not considering politics or end users at this point. wind and solar provide product, not revenue, customers do that. The price of electricity will be determined by the cost of a suite of non fossil sources. The question has not been answered. $x per ton of coal would trigger a switch-over to wind, $y per ton would trigger a switch-over to solar. What are x and y? I will revisit the issue of energy storage in a separate question.

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