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Economic value of U.S. fossil fuel electricity health impacts
Abstract Fossil fuel energy has several externalities not accounted for in the retail price, including associated adverse human health impacts, future costs from climate change, and other environmental damages. Here, we quantify the economic value of health impacts associated with PM2.5 and PM2.5 precursors (NOx and SO2) on a per kilowatt hour basis. We provide figures based on state electricity profiles, national averages and fossil fuel type. We find that the economic value of improved human health associated with avoiding emissions from fossil fuel electricity in the United States ranges from a low of $0.005–$0.013/kWh in California to a high of $0.41–$1.01/kWh in Maryland. When accounting for the adverse health impacts of imported electricity, the California figure increases to $0.03–$0.07/kWh. Nationally, the average economic value of health impacts associated with fossil fuel usage is $0.14–$0.35/kWh. For coal, oil, and natural gas, respectively, associated economic values of health impacts are $0.19–$0.45/kWh, $0.08–$0.19/kWh, and $0.01–$0.02/kWh. For coal and oil, these costs are larger than the typical retail price of electricity, demonstrating the magnitude of the externality. When the economic value of health impacts resulting from air emissions is considered, our analysis suggests that on average, U.S. consumers of electricity should be willing to pay $0.24–$0.45/kWh for alternatives such as energy efficiency investments or emission-free renewable sources that avoid fossil fuel combustion. The economic value of health impacts is approximately an order of magnitude larger than estimates of the social cost of carbon for fossil fuel electricity. In total, we estimate that the economic value of health impacts from fossil fuel electricity in the United States is $361.7–886.5 billion annually, representing 2.5–6.0% of the national GDP.
Highlights ► Fossil fuel electricity creates hundreds of billions of dollars of economic losses each year from health impacts in the U.S. ► The economic value of health impacts is significantly higher than retail costs or the estimated social cost of carbon. ► Consumers should be willing to pay 2–4times retail costs for emission free alternatives to fossil fuel electricity.
Economic value of U.S. fossil fuel electricity health impacts
Abstract Fossil fuel energy has several externalities not accounted for in the retail price, including associated adverse human health impacts, future costs from climate change, and other environmental damages. Here, we quantify the economic value of health impacts associated with PM2.5 and PM2.5 precursors (NOx and SO2) on a per kilowatt hour basis. We provide figures based on state electricity profiles, national averages and fossil fuel type. We find that the economic value of improved human health associated with avoiding emissions from fossil fuel electricity in the United States ranges from a low of $0.005–$0.013/kWh in California to a high of $0.41–$1.01/kWh in Maryland. When accounting for the adverse health impacts of imported electricity, the California figure increases to $0.03–$0.07/kWh. Nationally, the average economic value of health impacts associated with fossil fuel usage is $0.14–$0.35/kWh. For coal, oil, and natural gas, respectively, associated economic values of health impacts are $0.19–$0.45/kWh, $0.08–$0.19/kWh, and $0.01–$0.02/kWh. For coal and oil, these costs are larger than the typical retail price of electricity, demonstrating the magnitude of the externality. When the economic value of health impacts resulting from air emissions is considered, our analysis suggests that on average, U.S. consumers of electricity should be willing to pay $0.24–$0.45/kWh for alternatives such as energy efficiency investments or emission-free renewable sources that avoid fossil fuel combustion. The economic value of health impacts is approximately an order of magnitude larger than estimates of the social cost of carbon for fossil fuel electricity. In total, we estimate that the economic value of health impacts from fossil fuel electricity in the United States is $361.7–886.5 billion annually, representing 2.5–6.0% of the national GDP.
Highlights ► Fossil fuel electricity creates hundreds of billions of dollars of economic losses each year from health impacts in the U.S. ► The economic value of health impacts is significantly higher than retail costs or the estimated social cost of carbon. ► Consumers should be willing to pay 2–4times retail costs for emission free alternatives to fossil fuel electricity.
Economic value of U.S. fossil fuel electricity health impacts
Machol, Ben (author) / Rizk, Sarah (author)
Environmental International ; 52 ; 75-80
2012-03-08
6 pages
Article (Journal)
Electronic Resource
English
Economic value of U.S. fossil fuel electricity health impacts
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