What do SO[sub 2] emissions cost Allowance prices and externality adders
- Case Western Reserve Univ., Cleveland, OH (United States)
Several states require electric utilities to include estimates of external environmental costs ( adders'') in economic comparisons of conservation and supply alternatives by electric utilities. What are these costs when emissions are subject to a tradeable allowance system, as SO[sub 2] emissions by US utilities are In the simplest case, the social cost of additional emissions at a location then equals: (1) The allowance price plus (2) the external cost of those emissions minus the external costs avoided because emissions at other locations decrease. Emissions elsewhere must decrease because the total number of allowances is fixed. Since allowances are an internal cost, the appropriate adder is just the second quantity. Its value can be positive or negative. If negative, this implies that the local state regulatory commission should encourage emissions in it jurisdiction because they cause less damage then if emitted elsewhere. The general results is unaffected by the presence of local emission restrictions. However, if other jurisdictions also impose adders, the social cost expression becomes more complex.
- OSTI ID:
- 6877188
- Journal Information:
- Journal of Energy Engineering; (United States), Vol. 120:3; ISSN 0733-9402
- Country of Publication:
- United States
- Language:
- English
Similar Records
CEM data and its role in providing price signals for the SO{sub 2} emission allowance market
SO{sub 2} allowance trading: What rules apply?
Related Subjects
POLICY AND ECONOMY
20 FOSSIL-FUELED POWER PLANTS
ELECTRIC UTILITIES
SOCIO-ECONOMIC FACTORS
SULFUR DIOXIDE
AIR POLLUTION CONTROL
ALLOCATIONS
ECONOMIC ANALYSIS
FOSSIL-FUEL POWER PLANTS
CHALCOGENIDES
CONTROL
ECONOMICS
INSTITUTIONAL FACTORS
OXIDES
OXYGEN COMPOUNDS
POLLUTION CONTROL
POWER PLANTS
PUBLIC UTILITIES
SULFUR COMPOUNDS
SULFUR OXIDES
THERMAL POWER PLANTS
296000* - Energy Planning & Policy- Electric Power
290300 - Energy Planning & Policy- Environment
Health
& Safety
200202 - Fossil-Fueled Power Plants- Waste Management- Noxious Gas & Particulate Emissions