German Lignite Coal Use (LIGNITE)
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CASE NUMBER: 329
CASE MNEMONIC: LIGNITE
CASE NAME: German Lignite Coal Use
A. IDENTIFICATION
1. The Issue
After years of political repression and neglect, environmental
issues within the former East Germany (GDR) have begun to be
addressed. As a vital member of the Soviet Union's command
economy, the former GDR relied on lignite (an energy-intensive,
high-polluting, low-grade coal) for over 60 percent of its energy
supply. The legacy of pollution left by the use of lignite must
now be remediated. The GDR's immediate priorities concerning
lignite expose the relationship between its trade and environment.
These priorities include: 1) the reinvigoration of its economy; and
2) the readjustment of its polluting system as mandated by European
Community's standards (also see SULFUR case).
2. Description
Since the reunification of Germany, the catastrophic extent of
East Germany's environmental degradation has been gradually
emerging. The drive for economic growth during the command economy
of the former Soviet Union blinded the GDR's producing sector from
the environmental implications of their practices.
Energy-intensive industries were given priority within the
centrally controlled economies of former East Bloc including iron,
steel, light metals, chemicals, and engineering. During the
1950's and 1960's the Soviet Union paid little attention to the
modernization of energy production. Like other Central European
countries, GDR leaders were reluctant to divert capital from
industry to improve energy efficiency. As per capita energy
consumption grew and imported oil prices increased, pressure
mounted to become energy self-sufficient. To meet this objective
Czechoslovakia turned to its most abundant source of domestic
energy, lignite.
Lignite, or brown coal, is a low grade mineral that requires
extensive upgrading before it can be burned as a fuel source. The
process of converting brown coal into usable energy itself consumes
substantial amounts of energy. It takes five tons of lignite to
yield the equivalent energy level of one ton of hard coal. Natural
gas delivers 450% more caloric output per unit than lignite. Thus,
it produces two to three times the amount of SO2 and other
pollutants. As one of the former East Block's top energy
consumers, the former GDR had the highest rate of lignite
production.
A relatively large percentage of lignite production that
occurred in the former GDR. While most western nations decreased
their use of inefficient energy sources the Eastern block nations
increased. Jochen Bethkenhagen argues that these increases can be
attributed to the absence of "economic levers" that would stimulate
the conservation of energy. In his assessment, the 'conservation
by decree' approach eliminated only the most obvious sources of
wasteful usage of energy.
These wasteful habits encouraged strip mining that occurred at
depths of 40 to 80 meters in 1990. The average ratio of overburden
(earth) to coal in strip mines increased from 3.9:1 in 1980 to
4.5:1 in 1985. During the same year, 1.7 billion tons of
overburden was removed to achieve the coal production targets.
Lignite is not only detrimental to the land, but the process
of converting coal into energy produces large amounts of
atmospheric pollution in the form of sulfur and carbon monoxide.
Bitterfeld, Germany is a primary example of this type of
degradation. Often called the "filthiest city in Europe,"
Bitterfeld's industrial production processes have created an
ecological disaster area. The city's energy intensive industries
included dye plants, pesticide factories and aluminum works. The
energy supply was maintained by a dozen coal-burning power plants
which relied on lignite from a near-by, four mile open-strip-mining
pit.
Several deaths and illnesses have been attributed to pollution
created from Bitterfeld's industrial machine. The children of
Bitterfeld suffer from Bronchitis and other respiratory illnesses
two to three times more often than do young people elsewhere in
East Germany. Their retarded rate of bone growth, compared to
other peers from other areas, has also been attributed to the
poisonous residues of industry. The environmental quality is so
poor in Bitterfeld that a western study found the life expectancy
there is five years shorter than elsewhere for men and eight years
shorter for women.
The effects of environmental degradation in Bitterfeld extend
beyond the borders of the city. Sulfur dioxide emitted from the
lignite power plants have contributed to the degradation of
forests, lakes and rivers throughout Germany. It is estimated that
90 percent of East German forests are damaged as a result of air
pollution. According to a Kotyczka and Kroske study, the upper
Ore Mountains (Erzgebirge) have the most damaged forest areas in
Europe. Moreover, 9,000 lakes are dying throughout the region and
expert opinion suggests that all life is extinct in approximately
one third of its water sources.
Since the GDR's reunification with the Federal Republic of
Germany, these issues have gained recognition. In December 1990,
government officials from the former GDR decided to reduce the
consumption of lignite for energy production from 320 million to
200 million tons a year. EU regulations have also fostered the
salience of these issues by requiring Germany to address the energy
policies of the region.
The effects of trade are most clearly depicted by the Large
Combustion Plant (LCP) Directive adopted by the EU in June, 1988.
The LCP Directive set SO2 reduction targets for its member states.
Although it provided exceptions for power plants to exceed SO2
limits if there is only one essential source of fuel in a region,
Germany initiated an energy policy based on the strict standards.
Their methods for reducing SO2 and other particulate emissions
include filters and scrubbers. West Germany will also supply gas
to the East Germany as a substitute for the more polluting lignite.
In 1990, experts projected that $57 billion would be necessary to
retool the GDR's energy sector and make it environmentally sound.
Despite Germany's efforts, the inefficient consumption of
energy in the former GDR has necessitated the production of
lignite. One reason for the continued reliance on this high
pollution inefficient energy source is its price which is still
below world market levels. Moreover, a large fraction of the
population depend on these sectors for employment. These details
will continue to challenge the conversion of the former GDR's
energy sector.
The question now is to find another source for to meet energy
demand. Environmentalists fear that source may become nuclear
power. Ideally, more sustainable resources will be utilized, such
as natural gas and perhaps solar energy, to replace the archaic use
of lignite. The evolution of the energy debate for the former GDR
continues to mingle the contradictory expectations of the economic,
political and environmental arenas. The outcome of the debate will
ultimately be reflected in the success of Germany efforts to
reconcile the competing goals of trade (to invigorate the former
GDR economy through increased industrial activity) and the
environment (which must meet EU standards).
3. Related Cases
CHINCOAL Case
SULFUR Case
ECCO2 Case
Keyword Clusters
(1):Domain= EUROPE
(2):Forum= GERMANY
(3):Effect= SCALE
4. Draft Author: Timothy Conley
B. LEGAL Filters
5. Discourse and Status: AGReement and INPROGress
The case is one of agreement because the parties in East and
West Germany have agreed to remediate the former GDR's
environmental problems. The case is in progress because
remediation and readjustment are ongoing in Eastern Germany. It is
also in progress because the implications from the use of lignite
continue to effect health of individuals in the region.
6. Forum and Scope: GERMANY and REGION
The degradation from the former GDR's reliance on lignite has
primarily affected natural resources in Germany, but trans border
movements of air pollution have impacted other European countries
as well (see Table 2.). Germany has taken upon itself to remediate
the environmental damage created by its former communist cousin,
but it is also reacting to EU legislation.
7. Decision Breadth: 1 (Germany)
8. Legal Standing: TREATY
The Large Combustion Plant (LCP) Directive adopted by the EU
in June, 1988 set SO2 reduction targets for its member states.
III. GEOGRAPHIC Filters
9. Geographic Locations
a. Continental Domain: EUROPE
b. Geographic Site: Western Europe [WEUR]
c. Germany
10. Sub-National Factors: YES
11. Type of Habitat: TEMPERATE
IV. TRADE FILTERS
12. Type of Measure: Regulatory standards [REGSTD]
13. Direct vs. Indirect Impacts: DIRect
The EU's LCP Directive has had a direct impact on the
production on lignite within Germany. Germany has had to decrease
the production and use of this energy source to meet the high
standards set out in the LCP directive.
14. Relation of Measure to Impact
a. Directly Related: YES LIGNITE
b. Indirectly Related: YES ENERGY
c. Not Related: NO
d. Process: YES Habitat Loss
15. Product Type: COAL
16. Economic Data:
Industry Output: 335 Million Tons (1990)
17. Competitive Impact: LOW
18. Industry Sector: UTILITY
19. Exporter and Importer: Germany and Many
V. ENVIRONMENT Clusters
20. Environmental Problem Type: Habitat Loss
21. Species Information
22. Resource Impact and Effect: HIGH and Structural
23. Urgency and Lifetime: Low and 100s of years
24. Substitutes: Conservation
Other sources of energy are available to replace the use and
production of Lignite. Oil is the initial substitute, but in
subsequent years oil can be replaced by more efficient and less
energy-intensive energy resources. As mentioned in the Section 2.
Germany will also supply gas to the East Germany as a substitute
for the more polluting lignite.
VI. OTHER Factors
25. Culture: YES
Boehmer-Christiansen and Skea's analysis of environmental
politics in Europe, suggests that culture has played a role in
Germany's environmental program. They offer that the "German
language and culture tend to invite a more positive approach to
air-pollution control than in other" cases in Europe. In their
view, the mere presence of pollutants in Germany, as opposed to the
impacts on the ecosystems, is sufficient to stimulate a desire for
mitigative action. They conclude that Germany's culture and
history create a greater disposition towards pessimism and anxiety
which may, in turn, encourage a more dramatic public response
towards perceived threats.
26. Human Rights: NO
27. Trans-Boundary Issues: YES
The SO2 emissions from the polluting power stations in the
former GDR have created several air pollution problems for
Austrians and the rest of Germany itself.
28. Relevant Literature
Baumgartner, Thomas, and Atle Midttun, eds. The Politics of Energy
Forecasting. (Oxford: Claredon, 1987).
Boehmer-Christiansen, Sonja, and Jim Skea. Acid Politics:
Environmental and Energy Policies in Britain and Germany. (New
York: Belhaven Press, 1991).
Charles, Daniel. "East German Environment Comes into the Light."
Science 247 No.940 (January 1990).
Der Spiegel. "East Germany: Cauldron of Poison." March 1990.
Dickman, Steven. "Gold Mine in East Germany." Nature 349
(February 1991).
Economist. "East Germany's Energy Crunch: Pass the Candle." 23
June, 1990.
Hoffman, George W. The European Energy Challenge: East and West.
(Durham, NC: Duke Press, 1985).
Kotyczka, Carola and Heinz Kroske, "Ecological Aspects of the
German Democratic Republic's Transition from Command to Market
Economy," in Mikael Sandberg, ed. Baltic Sea Region Environmental
Protection, (Stockholm, Sweden: Almquist and Wiksell, 1991): 49-60.
Kramer, John M. The Energy Gap in Eastern Europe. (Washington,
DC: Lexington Books, 1990).
Nugent, N. The Government and Politics of the European
Community. (London: Manmillan, 1989).
Phillips, Andrew. "A Terrible Price." Maclean's 103 (September 17
1995).
Swann, Dennis. The Single European Market and Beyond. (New York:
Routledge, 1993).
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