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Weather and Pollution Abatement Costs

Mae Moh Mine and Power Plant operates a lignite mine and a minemouth coal-fired electricity generation plant in Lampang province in northern Thailand. Mae Moh is Thailand's largest lignite mine, and Mae Moh Power Plant accounts for nearly 20 percent of Thailand's installed generating capacity The power plant also generates air pollution, principally sulfur dioxide (SO2) emissions, as a byproduct of burning lignite. The plant's ambient concentrations of SO2 have been monitored for nearly a decade, which enables us to incorporate concentrations data with conventional input and output data to calculate the shadow value of being able to generate the SO2 concentrations, or the revenue forgone by having to abate the concentrations. We compare the cost of abating with current technology to the cost of adding new technology in the form of desulfurizaiton plants.

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Energy Specializations: Energy and the Environment – Air Emissions (other than greenhouse gases); Energy and the Environment – Policy and Regulation; Energy and the Environment – Other

JEL Codes: Q54: Climate; Natural Disasters and Their Management; Global Warming, Q41: Energy: Demand and Supply; Prices, Q42: Alternative Energy Sources, Q53: Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling, D24: Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity, Q35: Hydrocarbon Resources, Q31: Nonrenewable Resources and Conservation: Demand and Supply; Prices

Keywords: Pollution abatement, coal, electricity generation, Thailand, sulfur dioxide

DOI: 10.5547/ISSN0195-6574-EJ-Vol19-No2-11

Published in Volume19, Number 2 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.


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