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Environmental degradation costs in electricity generation: The case of the Brazilian electrical matrix

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  • Alves, Laura Araujo
  • Uturbey, Wadaed

Abstract

The main purpose of this paper is to emphasize the importance of including environmental degradation costs in the long-term planning of the Brazilian electricity sector. To this aim, environmental external costs associated to both hydro-power and thermal-power electricity generation are investigated. Monetary valuation methodologies are applied and environmental degradation costs, expressed in per kWh of generated energy, are obtained for the main types of generation sources of the Brazilian electricity matrix. Both local pollution due to particulate matter emissions and global warming effects are assessed. A classification of the sources from the point of view of their impact on the environment is given. Degradation costs associated to the installed capacity expansion in the Brazilian electricity sector during the time horizon 2007-2016 are estimated. These resulting costs represent lower boundary damage estimates associated only with the energy to be generated during the period. Results indicate that local pollution caused by a small number of plants could be even more costly to society than global warming and, also, show the importance of considering not only unitary damage costs but the participation of each source on the generated energy during the time horizon, as a guide to planning and policy making.

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  • Alves, Laura Araujo & Uturbey, Wadaed, 2010. "Environmental degradation costs in electricity generation: The case of the Brazilian electrical matrix," Energy Policy, Elsevier, vol. 38(10), pages 6204-6214, October.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:10:p:6204-6214
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    5. de Jong, Pieter & Kiperstok, Asher & Torres, Ednildo A., 2015. "Economic and environmental analysis of electricity generation technologies in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 725-739.
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    7. Evelyn Gabbay Alves Carvalho & Claudio Jos Cavalcante Blanco & Andr A. A. Montenegro Duarte & Luiz Maur cio Furtado Mau s, 2020. "Decision Support System for Hydro Power Plants in Amazon Considering the Cost of Externalities," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 40-47.
    8. Paes, Carlos Eduardo & Gandelman, Dan Abensur & Firmo, Heloisa Teixeira & Bahiense, Laura, 2022. "The power generation expansion planning in Brazil: Considering the impact of greenhouse gas emissions in an Investment Decision Model," Renewable Energy, Elsevier, vol. 184(C), pages 225-238.
    9. Casas-Ledon, Yannay & Arteaga-Perez, Luis E. & Dewulf, Jo & Morales, Mayra C. & Rosa, Elena & Peralta-Suáreza, Luis M. & Van Langenhove, Herman, 2014. "Health external costs associated to the integration of solid oxide fuel cell in a sugar–ethanol factory," Applied Energy, Elsevier, vol. 113(C), pages 1283-1292.
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