Environmental externalities: An ASEAN application to coal-based power generation. Extract

摘要

Significant benefits to human health that result from emissions control programs may justify the costs of pollution control policies. Many scientists, economists, risk analysts, and policymakers believe that comparisons of the benefits with the costs of pollution control demonstrate that the US stationary source, air emissions control program is justified. This justification is based upon pronounced benefits to human health, especially from controlling suspended particulates and sulfur compounds. Market decisions are usually made on the basis of a consideration of traditional costs such as capital, operating and maintenance, fuel costs, and fixed charges. Social costs, which could be significant, are not incorporated explicitly into such decisions. These social costs could result in a net reduction in the welfare of individuals, and of society as a whole. Because these social costs and their effects are not represented in the price of energy, individual have no way to explicitly value them; hence, they remain unaccounted for in market decisions. By accounting for external costs, the selection of energy sources and production of energy products can lead to and equilibrium, where the total cost of energy and energy products, together with resulting social costs, can be brought to an economic minimum. The concept of an air emissions control program is of interest to the ASEAN countries (Brunei, Indonesia, Malaysia, the Philippines, Singapore, and Thailand) and their governments, especially if such a program could be justified in cost-benefit terms and shown to be directly applicable to ASEAN conditions. It is the intent of the effort described herein to demonstrate that technical options are available to control emissions from coal-based, electric power plants and that costs of these options may be justified in cost-benefit terms.