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Chapter 2 - Decommissioning Costs and British Nuclear Policy

Gordon MacKerron

Year: 1991
Volume: Volume 12
Number: Special Issue
DOI: 10.5547/ISSN0195-6574-EJ-Vol12-NoSI-2
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Abstract:
The topic of decommissioning economics is not an isolated activity. As Gordon MacKerron shows in this chapter, decommissioning economics are linked to other, often national considerations. The advanced age of the British reactors, plus the government's desire to privatize the entire electrical utility industry, brought decommissioning to the front of public debate unexpectedly early in Britain. As decommissioning estimates have come under closer attention, they have tended to rise from early estimates. Today, the estimated costs are much higher than in the U.S. So far, the funds for this activity are only paper provisions. It appears that one source of higher costs will be increased regulatory requirements. Titus, nonengineering factors are beginning to affect decommissioning costs, as they have other nuclear costs in Britain and elsewhere. MacKerron concludes that the final costs of decommissioning are likely to be higher than estimated originally.

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Input-Output Analysis and Pollutant Emissions in France

Jean-Martial Breuil

Year: 1992
Volume: Volume 13
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol13-No3-9
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Abstract:
This paper deals with the principle of pollutant emissions defined by Leontief in 1971, based on a fixed coefficient model. I have tested the plausibility of this model by attempting to replicate data on French emissions of SO2 and NOx by combustion and processes.

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Emerging Environmental Markets: Improving the Competitiveness of Natural Gas

Janie M. Chermak

Year: 1994
Volume: Volume15
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol15-No3-5
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Abstract:
Current U.S. regulations focus on market approaches to reduce SO2, NOx, and CO2 pollution, allowing affected firms to choose the least-cost compliance alternative. Natural gas, a relatively benign fuel from an environmental perspective, could realize a substantial increase in demand if it is competitive. The viability of gas as an alternative has been questioned due to high forecast price and unstable supply. This paper assesses potential efficiency gains in the completion and production of natural gas wells which may lower production costs and increase recoverable reserves. Coupled with the premium that can be paid for its environmentally desirable qualities, gas can potentially be a feasible alternative. However, the window of opportunity is limited, because many industries, such as electric power generation, require decisions involving up-front capital expenditures that lock the firm into a specific compliance mechanism and fuel.

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Social Costing of Electricity in Maryland: Effects on Pollution, Investment, and Prices

Karen Palmer, Alan Krupnick, Hadi Dowlatabadi and Stuart Siegel

Year: 1995
Volume: Volume16
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol16-No1-1
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Abstract:
Many state public utility commissions (PUCs) have started to require electric utilities to consider environmental and other externalities in their planning processes. To date social costing has been applied exclusively to the evaluation of new sources of electricity. More comprehensive approaches to social costing would include requiring the utility to dispatch both new and existing generating units according to social cost, or requiring electricity consumers to pay a price for electricity that reflects its full social cost. Using estimates of external costs taken from the literature, this study contrasts the implications of these three different approaches for utility decision making, electricity prices, demand for electricity and other fuels and the net emissions of selected pollutants for a Maryland utility. We find that applying social costing at the investment stage only may lead to reduced investment in new resources, increased use of existing generation resources and higher emissions of key pollutants. Applying social costing to dispatch generally leads to increased levels of investment in clean technologies, lower levels of emissions and only moderate price increases. Also, social costing of electricity generally has a small impact on consumer demand for natural gas.

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Decomposition of SO2, NO1 and CO2 Emissions from Energy Use of Major Economic Sectors in Taiwan

Sue J. Lin and Tzu C. Chang

Year: 1996
Volume: Volume17
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol17-No1-1
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Abstract:
In this paper we use the Divisia index approach to decompose emission changes of SO2, NOx and CO2 from major economic sectors in Taiwan during 1980 to 1992. The study highlights the interrelationships between energy use and environmental quality, and provides insights for policy making. The emission changes are decomposed into five components-pollution coefficient, fuel mix, energy intensity, economic growth and industrial structure. Of all components analyzed, economic growth had the largest positive effect on emission changes for Taiwan's major economic sectors. Emissions of SO2 in industry and other sectors showed a decreasing trend due to fuel quality improvements and pollution control. However, NOx and CO2 emissions increased sharply in all sectors. Comparisons were also made with Germany, Japan and USA. This study hay shown that improvement in energy efficiency, pollution control and fuel substitution are major options to reduce SO2, NOx and CO2 emissions.

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A Note on Trends in European Industrial Pollution Intensities: A Divisia Index Approach

Matthew A. Cole, Robert J.R. Elliott and Kenichi Shimamoto

Year: 2005
Volume: Volume 26
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol26-No3-3
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Abstract:
This paper attempts to identify whether declining industrial pollution intensities in many European countries are a result of reductions in sectoral emissions intensities (i.e. the effects of regulations and technology) or changes to the product mix (e.g. the decline of heavy industries). This distinction is important since reductions in pollution that are a result of changes to the product mix may simply reflect a transfer of pollution from one country to another, rather than a net reduction. We attempt to resolve this issue by applying the divisia decomposition technique to a new dataset of industry-specific emissions intensities for three common air pollutants, for four European countries. Our results generally indicate the dominance of the sectoral intensity effect although, for the UK in particular, evidence of an increasingly clean product mix is found.

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Global Anthropogenic Methane and Nitrous Oxide Emissions

Elizabeth A. Scheehle and Dina Kruger

Year: 2006
Volume: Multi-Greenhouse Gas Mitigation and Climate Policy
Number: Special Issue #3
DOI: 10.5547/ISSN0195-6574-EJ-VolSI2006-NoSI3-2
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Abstract:
Methane and Nitrous Oxide emissions contribute significantly to greenhouse gas emissions globally, with an estimated total of 1,618 and 950 million metric tons of carbon equivalent in 2000, respectively. The estimates of these gases are highly dependent on country specific activity data and emission factors. Most countries are presently or are in the process of developing greenhouse gas inventories and projections. Developed countries are using more in-depth, detailed methodologies, activity data, and emissions factors and are passing on this knowledge to other countries through bilateral and multilateral processes. In order to take advantage of this newly available information, we have incorporated the detailed country prepared inventories and projections into an overall global estimation framework. The source and country level estimation methodology presented in this study allows for more accurate anthropogenic emission level estimates at a global level. The results show a slow growth in the recent historical period with quicker growth to 2020, under a without measures scenario.

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Mitigation of Methane and Nitrous Oxide Emissions from Waste, Energy and Industry

K. Casey Delhotal, Francisco C. de la Chesnaye, Ann Gardiner, Judith Bates, and Alexei Sankovski

Year: 2006
Volume: Multi-Greenhouse Gas Mitigation and Climate Policy
Number: Special Issue #3
DOI: 10.5547/ISSN0195-6574-EJ-VolSI2006-NoSI3-3
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Abstract:
Traditionally, economic analyses of greenhouse gas (GHG) mitigation focused on carbon dioxide (CO2) emissions from energy sources, while nonCO2 GHGs were not incorporated into the studies, due to the lack of data on abatement costs of non-CO2 GHGs. In recent years, however, increasing attention has been dedicated to the benefits of reducing emissions of non-CO2 GHGs such as methane and nitrous oxide. Increased attention to the potential role of these gases in a GHG reduction policy increased the need for better data on the costs of non-CO2 GHG abatement for countries and regions outside of the US and the European Union (EU). Using a net present value calculation, this analysis develops regionally adjusted costs per mitigation option and marginal abatement cost curves by region for use in economic models. The result is worldwide cost estimates for methane and nitrous oxide from waste, energy and the industrial sectors. This paper also demonstrates the ability to significantly reduce greenhouse gases from these sectors with current technologies and the low cost of methane and nitrous oxide relative to CO reductions.

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Methane and Nitrous Oxide Mitigation in Agriculture

Benjamin J. DeAngelo, Francisco C. de la Chesnaye, Robert H. Beach, Allan Sommer and Brian C. Murray 

Year: 2006
Volume: Multi-Greenhouse Gas Mitigation and Climate Policy
Number: Special Issue #3
DOI: 10.5547/ISSN0195-6574-EJ-VolSI2006-NoSI3-5
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Abstract:
This analysis presents cost estimates for mitigating nitrous oxide from cropland soils, and methane from livestock enteric fermentation, manure management and rice cultivation for major world regions. Total estimated global mitigation potential is approximately 64 MtCeq. in 2010 at negative or zero costs, 141 MtCeq. at $200/TCeq., and up to 168 MtCeq. at higher costs. Costs for individual options range from negative to positive in nearly every region, depending on emission, yield, input, labor, capital cost, and outside revenue effects. Future assessment requires improved accounting for multiple greenhouse gas effects, heterogeneity of emissions and yields, baseline management conditions, identification of options that generate farmer and societal benefits, adoption feasibility, and commodity market effects into mitigation decisions.

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Technological Modifications in the Nitrogen Oxides Tradable Permit Program

Joshua Linn

Year: 2008
Volume: Volume 29
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol29-No3-8
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Abstract:
Tradable permit programs allow firms greater flexibility in reducing emissions than command-and-control regulations and encourage firms to use low cost abatement options, including small-scale modifications to capital equipment. This paper shows that firms have extensively modified capital equipment in the Nitrogen Oxides Budget Trading Program, which covers power plants in the eastern United States. The empirical strategy uses geographic and temporal features of the program to estimate counterfactual emissions, finding that modifications have reduced emission rates by approximately 10-15 percent. The modifications would not have occurred under command-and-control regulation and have reduced regulatory costs.

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