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Energy Strategy for Inner Mongolia Autonomous Region Chapter j 18 359

in California, 2003; and the USA Federal Energy Regulatory
Commission, 2003).
l Combine renewable energy generation with advanced technologies such
as fuel cells, fly wheels, and biodigesters to reduce costs.
l Cost accounting for comparison of power from different technologies
should include the costs of “externalities,” such as health costs borne by
society caused by traditional coal emissions.
l Devise a scheme under which cleaner technologies that reduce
“externality” costs can be subsidized by the savings from these reduced
costs.
l Create educational and training programs at all levels of the work force,
including career advancement, advanced education in research and
development, and education of public officials.
l Policies are needed to overcome barriers, including methods to amortize
high up-front costs and assure access to markets, such as civic markets
(publiceprivate partnerships), with incentives, grants, rate rebates, and
tax advantages.
2. Changes in coal infrastructure can cause social disruption, safety problems,
and initial up-front stranded costs.
l Extensive retraining programs can improve the status of the workforce,
while new production facilities will create new jobs. Other policies can
be tailored to overcome other social disruptions.
l New safety and health issues may arise (but can be addressed), but
existing safety and health issues may be reduced.
l Need to weigh carefully these continued costs with alternative advanced
technologies and potential for environmentally sound energy
generation.
3. New alternative fuels (see Glossary) may be slow to be accepted, but must
be started for an orderly and definable “transition” to meet the future vision
for energy.
l New vehicle fueling stations must be in place before new fuels will be
accepted. The government must ensure financial incentives, which could
require initial subsidies.
l New pipelines and other infrastructure must be built in parallel with
local and on-site fuel generation (e.g., biogas, ethanol, hydrogen) for
meeting demand and the availability of new fuels. Some incentives for
industrial, commercial, and domestic users to convert to new fuels may
also be necessary.
l The public must be made aware of the need for “cleaner” energy sources
and be willing to pay for it today, as has been in the case in Germany,
the United Kingdom, and the United States. (Many of these costs can be
covered by reduced environmental and health costs borne by the
society.)