Final answer:
Peat forms in areas with low rates of decomposition due to an anaerobic, low-oxygen environment - such as swamps or bogs. These conditions slow down the breakdown of plant materials, leading to their accumulation, and under the right conditions, subsequent transformation into coal. Peat can also be utilized as a fuel source and soil additive.
Step-by-step explanation:
Peat, the precursor to coal formation, is typically formed in areas with low rates of decomposition. This occurs because peatlands, such as swamps or bogs, provide an anaerobic environment low in oxygen, which greatly slows down the decay of plant materials. The accumulation of these partially decomposed plants over time, in combination with the pressure of overlying sediments, can lead to the formation of coal. Conditions that contribute to peat formation include low temperatures, stagnant water preventing oxygen circulation, and acidity from the decay process. Over millennia, peat can be transformed into various grades of coal including lignite and eventually anthracite, through the processes of compression and heating.
One of the characteristics of a peat-forming environment is the accumulation of undecayed plant materials. These are present because the conditions in peat bogs and swamps reduce oxygen availability, which is necessary for the decomposers to break down the plant material. The soft, fibrous substance known as peat can be mined as a fuel source and also serves as a soil additive for gardening due to its ability to absorb water and improve soil aeration, though it does not add nutritional value to the plants.