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True Believers

I was looking at the coal company advertisements that the “Quit Coal” project put up. Basically, those advertisements criticize “aggressive” regulations put forward by the government, and policies pursued by Congress to control air pollution. Not surprisingly, the folks that worked in corporations did not want to be told how to run their business, much less do something that would put uncertainty in their business.

Some will say that coal companies were actively spreading lies and falsehoods. Or did they actually believe in what they were advertising — a statement of belief of reality as it appeared to a coal power plant operator? Certainly many of the pollution control technologies of early 1970s were not to the point where well tested or even scaled up. A coal power plant operator, who always operated their plant one way, did not want to deal with the risk of changing operating methods and technologies.

The "Fred Way" @ the John E. Amos Coal Power Plant

Some will claim that coal-fired power plant operators were mostly motivated by greed. Yet, if you look at historically, did the clean air equipment on power plants actually cost that much — especially compared to existing revenue? Most upgrades to power plants were covered by small increases in electric rates, granted by public service commissions. If anything, more pollution controls meant more employees, and more opportunities for companies to profit because now operated more complex power plants in a regulated market that fixed their profit above cost.

In retrospect, the coal power industry is run by people who believe their mission — to provide inexpensive electricity, using proven technologies. These people who are resistant to change, because they don’t always understand what it will mean in the future.

The lessons of coal advertising is three fold:

  • Most people don’t actively lie due to moral conscience, nor do the corporations that represent the aggregation of people lie due to threat to litigation
  • People and corporations that make them up are highly resistant to change, because they fear the unknown and potential costs of unknown, even if the costs really don’t prove to be significant over the long run.
  • Government has an important role in setting emissions and efficiency standards, to force corporations, which represent large aggregations of people, to take calculated risks to improve their environmental preformance.