initial investment of total aid Bulgaria hard Germany

Initial investment of total aid bulgaria hard germany

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initial investment of total aid, % Bulgaria hard 2007 1.3 4.86 4.86 3.8 0.00 0 Germany hard 2007 17.6 1880 424 560 2864 162.7 106.82 66 Hungary Hard 2007 0.9 39 39 41.7 41.69 100 Poland hard 2007 69.9 51.47 1810 1861 26.6 0.74 3 Romania hard 2007 2.1 92.8 4.0 96.8 46.1 44.19 96 Slovakia hard 2007 0.8 3.2 2.5 5.7 7.0 3.90 56 Spain hard 2007 6.4 450.2 35 663.121 1148.3 178.1 69.84 39 TOTAL 99.1 2462 54.67 459 3045 6020.2 60.7 25.4 42
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for Poland. Since Poland is the largest producer of hard coal in the EU at some 70 Mtce/y, the A /tce level of state aid drops significantly to below that of Hungary and Romania. The interesting cost spikes occur in Germany and Spain, where production has been in decline but state funds have remained more or less constant in past years. Spain appears to provide the most aid to its industry financing a total of almost 180 A /tce ( see Figure 18). However. the bulk of the funding is for the decommissioning of the industry as well as financing social and environmental liabilities. The inclusion of these are logical since the mining industry leaves a legacy of health, social and environmental issues that if not properly accounted for, must be paid for by the state or passed through by appropriate pricing. This issue is discussed later, but is a very important one since the pass through of costs may appear transparent as subsidies, but may be a component of coal pricing that is omitted by some major coal exporters. Regarding the inclusion of decommissioning and legacy costs, this is an area which is debated vigorously amongst stakeholders and opponents of nuclear power. It is important to understand the full costs of closing a mining industry even if the sector is in receipt of state aid. This is because when industry is in decline or contracting, society pays for the social welfare of the incumbents either through regeneration schemes or simply welfare costs to provide incomes to those affected. In one way or another, the state and private industry have to provide some form of extra assistance to these regions. There is a danger that such aid is wrongly stated as assistance to the coal industry as opposed to assistance to coal communities . If operational subsidies were considered in isolation, Spain state aid accounts for 70 A /tce. German state aid is equivalent to a considerable 110–115 A /tce. Typically, the operational subsidies allow the true (and high) cost of coal production to be deflated to levels equivalent to the delivered price of coal from imported sources. The extra fund therefore allows domestic production to be competitive. Subsidised coal is almost exclusively used for the purposes of electricity generation. However whether coal produced in many EU Member States is capable of being competitive in the future is 42 IEA CLEAN COAL CENTRE State aid in Europe Figure 17 Components of state aid in 2007 by EU Member States (Rademaekers and others, 2008) 0 1000 500 2000 3500 3000 2500 1500 State aid, € million Bulgaria Germany Hungary Poland Romania Slovakia Spain Article 7 aid to cover costs, € Article 4 aid for reducing mining activity, € Article 5-2 initial investment aid, € Article 5-3 production subsidy, €
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questionable. In Hungary, operating aid is expected to end in 2014; Germany intends to cease
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