Research on Negative Externalities and Internalization Strategies of the Coal Mine Power Generation Industry

Coal-fired power generation is a pillar of the world’s energy production system, but is beset with significant negative externalities. These costs are typically excluded from market pricing mechanisms. Existing literature on the topic lacks systematic analysis of the causes of these externalities and effective internalization methods. This research gap constitutes a key barrier to developing sustainable energy initiatives, particularly in coal-dependent regions. This paper examines the economic, environmental and regulatory causes of these negative externalities in the coal-fired power generation industry, aiming to identify viable internalization strategies. This aims to facilitate a balance between private costs and social impacts amid the implementation of sustainable energy programs. The research utilizes a hybrid approach, integrating a systematic literature review, case studies of coal-fired power generation systems, and econometric modelling to analyze externality drivers and effective internalization initiatives. Key findings reveal that while the causes of negative externalities can be clearly identified, successful internalization methods may not deliver the intended sustainable outcomes due to multiple barriers, such as high implementation costs and significant geographic variations. Ultimately, effective internalization methods can offer a robust framework for enhancing sustainability practices. provides a valuable reference for energy transition and offers a practical analytical tool for stakeholders addressing energy transition challenges in coal-dependent economies.