External Cost Calculation
European Commission conducted the cross-national study on the socio-environmental damages due to electricity generation over 10 years. The study concludes a set of “external cost” reference brought by different fuel sources. The study has been used as a reference for EU countries in various energy and environmental policy, such as Carbon Dioxide reduction target, energy tax, air emission cap, renewable energy support and funding policy, as well as other air quality improvement strategies, etc.
“External cost” is defined when the social or economic activities of one group of persons have an impact on another group and when that impact is not fully accounted, or compensated for, by the first group. The study points out that, the external cost of a power station would bring atmospheric and sewage emission, and take into account 7 categories’ assessment by the emission, generating into monetary terms, includes:
Impact category 1. Global warming
Effects - 2 key greenhouse gases: Carbon Dioxide (CO2) and CH4 - Climate change brings the world-wide effects on mortality, morbidity, coastal impacts, agriculture, energy demand, and economic impacts due to temperature change and sea level rise
2. Ecosystems
- Major pollution: acid rain or air emission - Long term impacts to the ecosystems
3. Human health:
- Major air pollutants: Sulphur Dioxide (SO2) and particulates
Mortality
(PM) - Cancer if uncontrolled emission
4. Human health:
- Major air pollutants: Sulphur Dioxide (SO2) and particulates
Morbidity
(PM) - In particular the respiratory symptoms - Noise
5. Crops
- Yield change for wheat, barley, rye, oats, potato, sugar beet
6. Amenity losses
- Noise
7. Building materials
- Major pollution: acid rain or Sulphur Dioxide (SO2) - Soiling of building, ageing utilitarian buildings
Study title: “External Costs – research results on socio-environmental damages due to electricity and transport” (2003) Download from: http://www.nei.org/documents/EC_External_Costs_Study.pdf 1