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Even so, Mr. Hasselknippe said that a significant number of power utilities had switched to relatively cleaner natural gas during the first half of 2008 because carbon trading had driven up the price of burning coal.
If coal users had to pay these costs out of their own pockets, Greenstone and Looney estimate, the price of burning coal at an existing plant would jump from 3.2 cents per kilowatt hour to 8.8 cents per kilowatt hour.
The price of burning oil will have to reflect the cost of emissions and not simply the expense of getting the fuel out of the ground.
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The time has come for society to pay the true environmental and national security price tag of burning fossil fuels.
Meanwhile, the surplus coal is being shipped to Europe, where gas remains expensive and the cost of burning coal has fallen as the price of carbon emissions on ETS has plunged (because too many emissions permits have been doled out).
By 2015 6 coal fired power stations will close and the cost of burning coal will increase hugely due to the introduction of the carbon price floor.
The goal, according to Frost, is to drive up the price not just of burning coal in the U.S., but of buying coal in the first place.
New federal rules mandating expensive retrofits to older plants are coming into force just as the price of cleaner burning natural gas has declined, with technological advances in drilling significantly increasing the natural gas supply.
After years of opposition, hundreds of the world's largest companies have signed up to the UN's Global Compact, which accepts the "polluter pays" principle of putting a price on the environmental costs of burning carbon fuels.
Carbon has a price and this influences the economics of burning fossil fuels.
As part of the revamp Burberry in September ended the practice of burning clothes it could not sell at full price.
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