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Title: Pollution and the price of power

Abstract

This study analyses the un-priced environmental harm caused by generating electricity from fossil fuels in the ECAR control region south of the Great Lakes in 2004 and again in 2015 when the recent Clean Air Interstate Rule will have its full effect. Using existing damage values, we estimate wholesale electricity under-pricing for coal-fired plants at about $40 per MWh in 2004, almost as much again as the $45/MWh actual price. Averaging across all fuels, the price of electricity was more than $30/MWh too low. The under-pricing will still be $18/MWh for coal plants and $15 for all generation sources in 2015, a decade after CAIR was adopted. Recognizing this environmental price now could reduce pollution levels, increase energy conservation and lead to wiser choices of new generation technology.

Authors:
 [1]
  1. University of Toronto, Toronto, ON (Canada). Dept. of Economics
Publication Date:
OSTI Identifier:
21036998
Resource Type:
Journal Article
Journal Name:
Energy Journal
Additional Journal Information:
Journal Volume: 29; Journal Issue: 2; Journal ID: ISSN 0195-6574
Country of Publication:
United States
Language:
English
Subject:
01 COAL, LIGNITE, AND PEAT; POWER GENERATION; FOSSIL FUELS; FOSSIL-FUEL POWER PLANTS; USA; AIR POLLUTION; COST; PRICES; POLLUTION REGULATIONS; TRANSFRONTIER POLLUTION; ELECTRIC POWER; ENVIRONMENTAL IMPACTS

Citation Formats

Dewees, D N. Pollution and the price of power. United States: N. p., 2008. Web. doi:10.5547/ISSN0195-6574-EJ-Vol29-No2-5.
Dewees, D N. Pollution and the price of power. United States. https://doi.org/10.5547/ISSN0195-6574-EJ-Vol29-No2-5
Dewees, D N. 2008. "Pollution and the price of power". United States. https://doi.org/10.5547/ISSN0195-6574-EJ-Vol29-No2-5.
@article{osti_21036998,
title = {Pollution and the price of power},
author = {Dewees, D N},
abstractNote = {This study analyses the un-priced environmental harm caused by generating electricity from fossil fuels in the ECAR control region south of the Great Lakes in 2004 and again in 2015 when the recent Clean Air Interstate Rule will have its full effect. Using existing damage values, we estimate wholesale electricity under-pricing for coal-fired plants at about $40 per MWh in 2004, almost as much again as the $45/MWh actual price. Averaging across all fuels, the price of electricity was more than $30/MWh too low. The under-pricing will still be $18/MWh for coal plants and $15 for all generation sources in 2015, a decade after CAIR was adopted. Recognizing this environmental price now could reduce pollution levels, increase energy conservation and lead to wiser choices of new generation technology.},
doi = {10.5547/ISSN0195-6574-EJ-Vol29-No2-5},
url = {https://www.osti.gov/biblio/21036998}, journal = {Energy Journal},
issn = {0195-6574},
number = 2,
volume = 29,
place = {United States},
year = {Tue Jul 01 00:00:00 EDT 2008},
month = {Tue Jul 01 00:00:00 EDT 2008}
}