Monetization of External Costs Using Lifecycle Analysis—A Comparative Case Study of Coal-Fired and Biomass Power Plants in Northeast China

Lingling Wang, Tsunemi Watanabe and Zhiwei Xu
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Lingling Wang: Graduate School of Engineering, Kochi University of Technology, Miyanokuchi 185, Tosayamada-cho, Kami City, Kochi 782-0003, Japan
Tsunemi Watanabe: School of Management, Kochi University of Technology, Miyanokuchi 185, Tosayamada-cho, Kami City, Kochi 782-0003, Japan
Zhiwei Xu: State Grid Heilongjiang Electric Power Company Limited, 301 Hanshui Road, Nangang District, Harbin 150090, China

Energies, 2015, vol. 8, issue 2, 1-28

Abstract: In this study, the structures of external costs are built in line with coal-fired and biomass power plant life cycle activities in Northeast China. The external cost of coal-fired and biomass power plants was compared, using the lifecycle approach. In addition, the external costs of a biomass power plant are calculated for each stage for comparison with those of a coal-fired power plant. The results highlight that the external costs of a coal-fired plant are 0.072 US $/kWh, which are much higher than that of a biomass power plant, 0.00012 US$/kWh. The external cost of coal-fired power generation is as much as 90% of the current price of electricity generated by coal, while the external cost of a biomass power plant is 1/1000 of the current price of electricity generated by biomass. In addition, for a biomass power plant, the external cost associated with SO 2 , NO X , and PM 2.5 are particularly lower than those of a coal-fired power plant. The prospect of establishing precise estimations for external cost mechanisms and sustainable energy policies is discussed to show a possible direction for future energy schemes in China. The paper has significant value for supporting the biomass power industry and taxing or regulating coal-fired power industry to optimize the energy structure in China.

Keywords: external cost; coal-fired power plant; biomass power plan; lifecycle (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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