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Cost evaluation of energy considering externalities

Ma Zhan

[email protected]

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Outline

™ What are externalities

™ The ExternE Project

™ The Ecosense Model

™ Apply the Ecosense Model in China

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What are externalities?

™ Fuel cycle externalities are the costs imposed on society and the environment that are not accounted for by the producers and consumers of energy, i.e. that are not included in the market price.

™ They include damage to the natural and built

environment, such as effects of air pollution on health, buildings, crops, forests and global warming;

occupational disease and accidents; and reduced

amenity from visual intrusion of plant or emissions of noise.

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The ExternE Project

™ Who is involved?

™ What are the achievements of the ExternE project?

™ What is the ExternE Methodology?

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Who is involved?

™ involves over 30 teams from research institutes and consultancies in nine Member States of the European Union and other European countries

™ include economists, ecologists, environmental scientists, energy technologists, health

specialists, atmospheric chemists and modellers, and computer software specialists.

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What are the achievements of the ExternE project?

™ Developed an effective “impact pathway"

methodology

™ Assessed many different fuel cycles consistently

™ Made reliable assessments of marginal costs

™ Identified the key externality issues for future policy

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What is the ExternE Methodology?

™ Definition of the fuel cycle

™ Guiding principles

™ Impact Pathway Approach

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Definition of the fuel cycle

The coal fuel cycle:

™ Construction of new plant

™ Coal mining

™ Limestone quarrying

™ Transport of coal, wastes, other materials

™ Power generation

™ Waste disposal

™ Electricity transmission

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Impacts of the coal fuel chain

™ Human health

™ Accidents

™ Building materials

™ Crops

™ Forests

™ Freshwater fisheries

™ Ecosystem

™ Global warming

™ Noise

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Guiding principles

™ Transparency: to show how the work was done, and what was assessed and what was not.

™ Consistency: to allow valid comparisons to be made between different fuel cycles and different types of impact within a fuel cycle.

™ Comprehensiveness: all impacts of a fuel cycle should be considered, even though many may not be investigated in detail

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Impact Pathway Approach

Technology

Burden

Concentration field

Impact

Damage

Emission factor

Dispersion model

Dose/response function

Monetary valuation Pathway Stage

Data/Model

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Differences between LAC and ExternE

™ LCA tend not to be specific on the calculation of impacts, if they have attempted to quantity impacts at all.

™ LCA have a much more stringent view on system boundaries and do not prioritize between different impacts.

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The EcoSense Model

The objectives for the development of the EcoSense model were:

™ to provide a tool supporting a standardized calculation of fuel cycle externalities

™ to integrate relevant models into a single system

™ to provide a comprehensive set of relevant input data for the whole of Europe

™ to enable the transparent presentation of intermediate and final results

™ to support easy modification of assumptions for sensitivity analysis

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The EcoSense Modules

Source:www.externe.jrc.es

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Apply the Ecosense Model in China

™ Feasibility

™ Plan of My Research

™ Significance

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Reference

™ http://www.externe.jrc.es

™ http://www.weblakes.com

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Referensi

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