Assessing Health Benefits of Controlling Air Pollution from Power Generation: The Case of a Lignite-Fired Power Plant in Thailand

The impact pathway approach (IPA) is used to estimate quantitatively the level of health effects caused by particulate matter (PM10) and sulfur dioxide (SO2) emission from a lignite-fired power plant located in the Mae Moh area in northern region of Thailand. Health benefits are then assessed by comparing the levels of estimated health impacts without and with the installation of the flue gas desulfurization (FGD) equipment. The US EPA industrial source complex model is used to model air pollution dispersion at the local scale, and the sector average limited mixing meso-scale model is used to model air pollution transport at the regional scale. The quantification of the health end points in physical terms is carried out using the dose–response functions established recently for the population in Bangkok, Thailand. Monetarization of these effects is based on the benefit transfer method with appropriate adjustment. Finally, it has been found that the installation of the FGD to control SO2 emission at Mae Moh significantly reduces adverse health effects not only on the population living near the power plant but also all over the country. A FGD unit installed at the 300-MW power unit can result, on average, in 16 fewer cases of acute mortality, 12 fewer cases of respiratory and cardiac hospital admissions, and almost 354,000 fewer days with acute respiratory symptoms annually. In monetary terms this benefit is equivalent to US $18.2 million (1995 prices) per annum. This benefit is much higher than the annualized investment and operation costs of FGD (US $7.4 million/yr).