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The Economics of Gas Utilizationin a Gas-Rich, Oil-Poor Country: The Case of Bangladesh

Gulder Schramm

Year: 1983
Volume: Volume 4
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol4-No1-3
View Abstract

Abstract:
It has become an article of faith that clean-burning, low-polluting natural gas is a premium fuel and that on a net heat basis it is inherently more valuable than its closest competitor, fuel oil. This conclusion has been drawn by comparing pollution characteristics of both fuels. While the conclusion is correct, it is correct only in regions that have free access to both natural gas and oil delivered to the user's premises at similar costs per Btu.



Cost-Effective Control Strategies for Energy-Related Transboundary Air Pollution in Western Europe

Heinz Welsch

Year: 1990
Volume: Volume 11
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol11-No2-5
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Abstract:
In this paper a simulation model of the West European power plant industry, combined with transboundary source-receptor relationships, is used to determine cost-effective reduction rates for SO2 emissions in any one country so that certain, exogenously given, deposition reduction targets are attained. The overall costs implied by the proposed strategies, and their distribution among countries, are examined and compared to those associated with the traditional emission-standard approach. It is found that the cooperative and flexible strategies considered allow for overall cost savings of up to 60 percent, given the same degree of deposition reduction.



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.



The Economic Impact of the Clean Air Act Amendments of 1990

Dale W. Jorgenson and Peter J. Wilcoxen

Year: 1993
Volume: Volume 14
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol14-No1-7
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Abstract:
The purpose of this paper is to quantify the economic impact of the Clean Air Act Amendments of 1990. The long-run cost of environmental regulations enacted prior to 1990 amounts to 2.59% of the U.S. national product. The new legislation will reduce the national product by a further 0.6% when the impact is complete. Electric utilities and primary metals industries will be especially hard hit by this legislation.



The Impact of Natural Gas Imports on Air Pollutant Emissions in Mexico

Alberto Bustani and Elisa Cobas

Year: 1993
Volume: Volume14
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol14-No3-1
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Abstract:
This paper analyzes the impact that natural gas imports could have on fuel emissions in northern Mexico. We discuss the problem created in the 1980s when a shift from natural gas to residual oil in industrial processes increased emissions of air pollutants significantly. The benefits of substituting leaded for unleaded gasoline in the 1990s are discussed also.In July 1992 the Mexican government announced for the first time since oil nationalization that private companies in Mexico are allowed to directly import natural gas. The transportation of natural gas, however, remains reserved only for Pemex, the national oil company. This opens the possibility of reducing the burning of high-sulphur residual oil in both the industrial and the energy production sectors in Mexico, particularly in the northern region where only 6.7% of the of the country's natural gas is produced. Natural gas imports have also opened the possibility of using compressed natural gas (CNG) in vehicles in northern Mexico.



Global Warming and Urban Smog: Cost-Effectiveness of CAFE Standards and Alternative Fuels

Alan J. Krupnick, Margaret A. Walls, and Carol T Collins

Year: 1993
Volume: Volume14
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol14-No4-5
View Abstract

Abstract:
In this paper we estimate the cost-effectiveness, in terms of reducing greenhouse gas emissions, of increasing the corporate average fuel economy (CAFE) standard to 38 miles per gallon and substituting methanol, compressed natural gas (CNG), and reformulated gasoline for conventional gasoline. Greenhouse gas emissions are assessed over the entire fuel cycle and include carbon dioxide, methane, carbon monoxide, and nitrous oxide emissions. To account for joint environmental benefits, the cost per ton of greenhouse gas reduced is adjusted for reductions in volatile organic compound (VOC) emissions, an ozone precursor. CNG is found to be the most cost-effective of these alternatives, followed by increasing the CAFE standard, substituting methanol for gasoline, and substituting reformulated for conventional gasoline. Including the VOC benefits does not change the ranking of the alternatives, bug does make the alternative fuels look better relative to increasing the CAFE standard. None of the alternatives look cost-effective should a carbon tax of $35 per ton be passed, and only CNG under optimistic assumptions looks costeffective with a tax of $100 per ton of carbon.



On the Use of 'Adders' by Public Utility Commissions

John Tschirhart

Year: 1994
Volume: Volume15
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol15-No1-7
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Abstract:
State public utility commissions are developing programs to reduce emissions from electric generation facilities. Programs call for minimizing the total cost of meeting future demands for power, where pollution damages are part of the total cost. In the process of choosing new generation sources, dirtier technologies are handicapped relative to cleaner technologies through the use of "adders" which are meant to measure damages. However, the damage costs are left at the planning stage; they are not included in electricity rates. This practice coupled with standard rate setting procedures may lead to inferior outcomes.



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
View Abstract

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.



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
View Abstract

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.



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
View Abstract

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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