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Your right as far as CO2 is concerned, except where nuclear power plays a role. But the main reason for banning coal burning etc. in cities had nothing to do with CO2 but to do with the noxious other stuff that was seriously damaging to health - especially when concentrated in a localised region. The large power stations not only disperse the other gases better but also burn much more efficiently so as to produce a lower percentage of CO and particulates. Nowadays many will also have measures in place to remove other gases too.
Peppercorn - I agree with the point that CO2 is easy to ignore. But I am curious, if CO2 had an 'odour' wouldn't we have grown so used to it by now that we would no longer recognise it.
There is a moral question about the western nations externalising our pollution to other countries, but that is an argument for another day...