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
Calculation of External Cost of CLP’s fossil fuels power generation1
Year 2004
Coal cents Euro
Oil cents Euro
Gas cents Euro
per kWh
per kWh
per kWh
Total in Euro
% based CLP Hong Kong Coal
consumed
TJ
TJ
GWh
7.580
133,403
60.3
15,143
114,781,327,312
Oil
consumed
2,024
0.9
230
Gas
consumed
85,777
38.8
9,737
Total fossil fuels
221,204
5.700
1.791
1,309,549,155 17,438,249,196
25,109
1,335,291,257
GPEC (India) Gas
consumed
Naphtha consumed Total fossil fuels
26,475
97.8
3,567
587
2.2
79
27,062
6,388,344,518
3,646
63,883,445
Yallourn (Australia) Coal
consumed
15,299
100
10,372
78,619,760,000
79,867
99.6
8,673
65,738,787,302
307
0.4
33
786,197,600
Ho-ping (Taiwan) Coal Oil
consumed consumed
Total fossil fuels
80,174
190,019,575
8,706
659,288,069
Anshun II (China) Coal Oil
consumed consumed
Total fossil fuels
19,277
99.8
1,785
45
0.2
4
19,322
13,529,037,974 23,749,017
1,789
135,527,870
Group total Coal consumed
247,846
68.3
35,972
Oil consumed
2,376
0.7
267
Gas consumed
112,252
30.9
13,304
587
0.2
79
Naphtha consumed Total fossil fuels
363,061
49,622
272,668,912,588 1,523,317,746 23,826,593,714
Total cost
2,980,188,240
CLP Asia sub-total
1,644,896,984
1
European Commission Community Research report, “External Costs - Research results on socio-environmental damages due to electricity and transport” (2003). Download: http://www.nei.org/documents/EC_External_Costs_Study.pdf 2