Coal killed 670,000 in 2012

China's coal consumption killed over 600,000 people in 2012, and accounted for as much as 60 percent of particles 2.5 micrometers or more in size (commonly known as PM 2.5) in China's air, according to a report released on Monday by the Natural Resources Defense Council (NRDC), a New York-based non-profit environmental advocacy group.

The report, conducted jointly by NRDC, Chinese Academy for Environmental Planning under the Ministry of Environmental Protection, China's National Climate Center and China Coal Research Institute shows that an estimated 670,000 deaths in 2012 were caused by heavy coal usage and smog-related diseases such as heart disease, stroke and lung cancer.

Each ton of coal consumed produced 260 yuan ($42) worth of damage to the environment and human health, while the government currently only charges between 30 and 50 yuan in environmental fees and taxes for each ton, which means "the country's current pricing system has failed to reflect the true costs behind coal consumption," the report found.

"Coal consumption accounts for up to 65 percent of China's overall energy consumption," said Teng Fei, an associate professor at the Institute of Energy, Environment and Economy at Tsinghua University, Shanghai-based news portal thepaper.cn reported. Teng suggested that the government could control coal production and consumption by increasing production costs for coal burning and other coal energy-related industries through higher tax rates.

"When they use coal power, corporations and citizens often neglect the harms that coal energy can cause to the environment and human health, which can lead to excessive usage," Teng said. Wang Tao, a scholar in the Energy and Climate Program based at the Carnegie-Tsinghua Center for Global Policy, said that increasing tax rates will gradually change energy consumption behaviors.

"When the price of coal consumption is equal to or higher than other energy sources such as natural gas, people will switch energy consumption from coal to other energy sources. But this process takes time," he said. Wang also pointed out that it is important to look at how the government spends the money after collecting environmental taxes, as the money should be used to protect the environment.

The study highlighted coal mining's negative influence on China's water resources, saying that ongoing, large-scale coal mining has caused water pollution and lowered water tables. Teng said that coal production and consumption also creates large amount of greenhouse gas, adding that no studies have measured the social cost of greenhouse gases in China.

The report said that air pollution is one of the main factors contributing to mortality in China, quoting a 2012 WHO report saying that over 70 percent of China's population lives in regions with high levels of PM2.5, adding that coal power accounted for up to 50 to 60 percent of PM2.5 density.