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External cost of coal based electricity generation: A tale of Ahmedabad city

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  • Mahapatra, Diptiranjan
  • Shukla, Priyadarshi
  • Dhar, Subash

Abstract

Electricity production causes unintended impacts. Their exclusion by the market leads to suboptimal resource allocations. Monetizing and internalizing of external costs, though challenging and debatable, leads to a better allocation of economic resources and welfare. In this paper, a life-cycle analysis (LCA) on the production of electricity from conventional coal based electricity generation system has been performed in order to examine the environmental impacts of coal based electricity generating systems in the twin-city of Ahmedabad and Gandhinagar in western India. By using dose–response functions, we make an attempt to estimate the damages to human health, crops, and building materials resulting from the operation of coal power plants and its associated mines. Further, we use geographic information system to account for spatially dependent data. Finally, monetary values have been assigned to estimate the damage to human health, crops and building materials. This study reveals that the health as well as on non-health impacts of air pollution resulting from coal based electricity generation may not be ignored both in absolute as well as economic value terms.

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  • Mahapatra, Diptiranjan & Shukla, Priyadarshi & Dhar, Subash, 2012. "External cost of coal based electricity generation: A tale of Ahmedabad city," Energy Policy, Elsevier, vol. 49(C), pages 253-265.
    • Handle: RePEc:eee:enepol:v:49:y:2012:i:c:p:253-265
    DOI: 10.1016/j.enpol.2012.06.014
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    5. Selim Karkour & Yuki Ichisugi & Amila Abeynayaka & Norihiro Itsubo, 2020. "External-Cost Estimation of Electricity Generation in G20 Countries: Case Study Using a Global Life-Cycle Impact-Assessment Method," Sustainability, MDPI, vol. 12(5), pages 1-35, March.
    6. Jintao Lu & Chong Zhang & Licheng Ren & Mengshang Liang & Wadim Strielkowski & Justas Streimikis, 2020. "Evolution of External Health Costs of Electricity Generation in the Baltic States," IJERPH, MDPI, vol. 17(15), pages 1-22, July.
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    8. Herrera, I. & De Ruyck, J. & Ocaña, V.S. & Rubio, M. & Martínez, R.M. & Núñez, V., 2013. "Environmental impact of decentralized power generation in Santa Clara City, Cuba: An integrated assessment based on technological and human health risk indicators," Applied Energy, Elsevier, vol. 109(C), pages 24-35.
    9. Lingling Wang & Tsunemi Watanabe & Zhiwei Xu, 2015. "Monetization of External Costs Using Lifecycle Analysis—A Comparative Case Study of Coal-Fired and Biomass Power Plants in Northeast China," Energies, MDPI, vol. 8(2), pages 1-28, February.
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