Letters to the Editor
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Rowyna...
Both the US and China (and probably many other places) have huge coal reserves. This is one reason the peak-oil theories are stupid. But, as we know, coal is dirty. And, as I understand it, its still much cheaper to extract oil for transportation fuel than it is to convert coal into a liquid or gas form.
I actually heard sometime a year ago (and I don't know where I read it) that China over-produces electricity. There are many inefficient illigal coal power plants in China The problem is that their electricity generation is inefficient and the transmission system is really bad.
Another issue here... all of North China (ie. China North of the Yangzi river) is heated with coal.
The funny thing is, there are really easy ways to start addressing the issue in China. For example, retrofit buildings with more insulation can have a huge impact on China's fuel usage paterns.