Externalities of energy use, analyzed for shipping and electricity generation
Date
2015
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Publisher
University of Delaware
Abstract
Energy use is central to the modern lifestyle, but producing this energy often comes at an environmental cost. The three studies in this paper look at the tradeoffs involved in energy production. The first looks at transitioning marine vessels to natural gas from current distillate fuels. While natural gas will reduce local air pollutants, such as sulfur oxides and particulate matter, the implications for greenhouse gases depend on how the natural gas is extracted, processed, distributed, and used. Applying a "technology warming potential" (TWP) approach, natural gas as a marine fuel achieves climate parity within 30 years for diesel ignited engines, though it could take up to 190 years to reach climate parity with conventional fuels in a spark ignited engine. Movement towards natural gas as a marine fuel continues to progress, and conditions exist in some regions to make a near-term transition to natural gas feasible.
The second study looks at externalities associated with electricity generation. The impact on the surrounding community is one concern when siting new electricity generating facilities. A survey was conducted of residents living near an industrial scale wind turbine and a coal-fired power plant to determine their visual and auditory effects on the residents. Results concluded that respondents living near the wind turbine were in favor of the facility. They were willing to pay an average of $2.56 a month to keep the turbine in its current location. Respondents living near the coal plant were opposed to the facility. They were willing to spend $1.82 a month to have the facility removed.
The third study presents a cost effectiveness analysis of three of the main fuels used for electricity generation, namely coal, natural gas, and wind. This analysis adds social costs to the private costs traditionally utilized by investors making decisions. It utilizes previous research on visual and auditory amenity and disamenity values as well as recent published studies on the impacts of electricity generation on water use, wildlife, and property values, among others, as well as other impacts well documented in the literature. When literature values were not identical, low, medium, and high values were considered in order to look at the full range of values. On average, the cost of wind power is $0.0332/kWh, natural gas power is $0.1071/kWh, and coal $0.1314/kWh.