Abstract
The purpose of this study is to investigate the main sources of inefficiency of the Brazilian coal industry. In addition, the authors examine the current and the future competitiveness of the Brazilian coal industry taking into account the effects of globalization, the modernization of the mining techniques and, most important, the environmental costs regarded under the concept of sustainable development. This paper examines some of the causes behind the alleged inefficiency of coal production and coal-electric generation, with special emphasis to environmental issues. The rest of the paper is organized as follows. Section 2 outlines a profile of the energetic potential of coal reserves in Brazil. In section 3, the authors discuss environmental restrictions and other features that can be related to the performance of the coal industry in Brazil.
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