Facts and Confusion: Carbon Fees for CO2 and Coal

Post below is an updated and expanded version of CO2 is heavier than coal.

Chemistry:  Carbon is an atom with atomic weight of 12. During combustion it combines with two oxygen atoms with atomic weight each of 16. The outcome is a CO2 molecule with atomic weight of 44. The molecule that results from the reaction is 3.7 times as heavy as the carbon atom alone.

Coal is a sedimentary rock that varies by location and type. It is mostly carbon, but not pure. The proportion of carbon varies from 60% in Lignite to 90% in Anthacite. A typical value for discussion purposes is 80%. [Ref Wikipedia] Burning one ton of this typical coal will produce about three tons of CO2.

Calculation: 1 ton x 3.7 x 80% = 3 tons

Many have proposed that a tax or fee be imposed on the CO2 that is emitted from the burning of coal and other fossil fuels. They often suggest that the fee start low, say at $10 per ton of CO2, and rise by this amount each year. The fee on CO2 in Year 10 would be $100 per ton.

With this fee schedule for CO2, the fee on typical coal would be $30 per ton in Year 1 and $300 per ton in Year 10.

The average price of coal in the US in 2013 was about $37 per ton. [Source: US EIA] With this fee schedule, the fee for the CO2 would quickly dominate over the price of the coal before the fee.

Units of Measurement:  Proposals for fees on CO2 emissions generally use dollars per metric ton of CO2.  One metric ton equals 1000 kilograms, which equals 2205 pounds.   One US ton equals 2000 pounds.  $10 per metric ton of CO2 work outs to a fee of  $9.07 per US ton.

Calculation:  $10 x (2000 / 2205)   =  $9.07

In a model constructed in 2010 I used a fee of $11.50 per metric ton of CO2 that had been proposed by James Hansen.  This works out to $10.43 per US ton of CO2.  Using the ratio of 3:1 above, this becomes $31.29 per US ton of coal.

Calculation:  $11.50  x  (2000/2205)  x  3  =  $31.29

Because the 3:1 ratio is itself only a rough estimate, we may round the last result and stipulate that a fee of $11.50 per metric ton of CO2 works out to a fee of $30 per US ton of typical coal.

Bill Allen    03-21-15

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