U.Va Coal Power and the Group

Few may realize that among the numerous coal trains that travel rumble through grounds each day, a small percentage of their cargo is actually destined for right here at U.Va. The strange “chugging” sound that is sometimes present on the corner is none other than the sound of coal being unloaded from train cars and loaded into the silos of the University power plant nestled between the corner and the hospital. According to The Daily Progress, the coal that is burned on U.Va property accounts for about 40% of the total electricity consumption of the University. In addition to this coal, U.Va also burns natural gas and heating oil at the University owned plant while at the same time importing electricity from the national grid. With the average Virginian receiving, on average, 38% of their electricity from nuclear power, the large portion of U.Va that is powered by coal generated right here on grounds has irked many environmentalists here in Charlottesville.

Olson would see the generation of power here at U.Va as a public good being provided by a relatively large group of people. The 20,000+ U.Va students who pay tuition at U.Va and the countless other faculty, staff, and visitors who also have a stake in University activities make up this group and share in the benefits and costs of generating power right here in Charlottesville. A group here at U.Va, Beyond Coal, has embodied some of the issues that Olson finds with large groups. The students among this group could be assumed to have a rather large personal interest in the elimination of coal power at U.Va and would gain a large amount of personal utility if this goal was accomplished. Their proposals for accomplishing this goal are generally a move to cleaner fuel sources such as natural gas and renewable sources such as solar power. These sources of energy would be more expensive to the U.Va community if used to supply the same amount of power currently supplied by coal. I would also argue that the majority of U.Va stakeholders would prefer to have their energy generated in the cheapest possible way and if given the choice of higher tuition costs or continued coal generation, would choose the latter. The relatively small interest group, Beyond Coal, is looking to take advantage of the size of the group by free-riding the cost increase of the cessation of coal generation among the entire U.Va community.

A small group, Beyond Coal is very focused in their interests and has little internal debate among their members about their goal. They would likely be unwilling, however, to take the entire cost that ending coal generation at U.Va would incur and internalize it in their small group. It is likely, however, that they value the cessasion of coal generation at U.Va at more than they would personally pay should the cost be divided among over 20,000 people. They would prefer instead to spread it out among the large group that is U.Va. If they succeed in eliminating coal power at U.Va they would incur a personal utility gain that would far outweigh the personal expense that they would endure once the expense is divided among the whole group. In this way we find a good example of what is wrong with large groups right here at U.Va where a small group has the possibility of gaining a large gain in personal utility at the expense of the large group.