Published online by Cambridge University Press: 05 July 2014
Summary
This chapter discusses damage cost estimates for electric power. The damage cost of the power plant itself is straightforward, if one has the required data for the emission of pollutants (and other burdens) per kWhe. But for many policy applications one needs to compare different technologies (e.g. coal versus nuclear or wind) that have very different life cycles. This necessitates an analysis of the entire fuel chain, including fuel extraction, plant manufacture and construction, and so on, as well as the power generation phase. For that reason we begin this chapter with the methodology of fuel chain analysis. To illustrate how the practice of fuel chain analysis has evolved over time and how the issues of concern (priority impacts) have been changing, we present a review of the main fuel chain studies that have been carried out in the last 25 years. Finally, we present current assessments of the most important power production technologies. Fossil fuels, especially coal, oil and lignite, have the largest damage costs due to greenhouse gases and health impacts of the classical air pollutants. The damage costs are low for the renewables and for the normal operation of the nuclear fuel cycle.
Scope of the analysis
Boundaries of the analysis
When calculating the damage costs of electric power, one has to begin by defining the boundaries of the analysis. This depends on the objective. If one wants to evaluate the benefits of different technologies for reducing the SO2 emissions of coal fired plants, it suffices to consider the SO2 damage costs of the plants in question (since SO2 abatement does not appreciably alter the efficiency). If the objective is to compare different coal fired plants (e.g. pulverized coal, fluidized bed and integrated gasification combined cycle), one has to evaluate the burdens for each of these plant types, and, to the extent that the efficiencies are different, one also has to account for the fact that the relative contribution of the upstream impacts is different. After all, the comparison should be made per kWhe that is produced (i.e. useful output), not per unit of fuel that is consumed.
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