A New Report Examines the "Hidden" Cost of Electric Energy Production
With the debate over the cost of generating electric power by fossil fuel versus renewable resources, a new report from the National Research Council is timely. Congress requested the report to assess the external effects caused by various energy sources over their entire life cycle -- for example, not only the pollution generated when gasoline is used to run a car, but also the pollution created by extracting and refining oil and transporting fuel to gas stations. These effects are often not reflected in energy prices, so government, businesses, and consumers may not realize the full impact of their choices.
The committee that wrote the report focused on monetizing the damage of major air pollutants -- sulfur dioxide, nitrogen oxides, ozone, and particulate matter -- on human health, grain crops and timber yields, buildings and recreation. The report concluded that electricity produced from coal at 406 coal-fired power plants had non-climate related external costs -- not reflected in the price the electricity consumer pays -- of $62 billion, or about 3.2 cents for every kilowatt-hour (Kwh) produced. The climate based monetary damages range from 0.1 to 10 cents per Kwh. The report also stated that coal-fired plants are the single largest source of greenhouse gases in the U.S.
On the other hand, the life-cycle damages of wind power are small. Although wind power currently produces just over 1 percent of U.S. electricity, it has large growth potential.
Why this is important for Arkansans?
- Arkansans have relatively poor health compared to the rest of the nation and health care costs are rising. Coal fired power plants contribute to both problems.
- Agriculture, timber production, and outdoor recreation are a big part of the state's economy. Coal fired power plants can hurt those parts of our economy.
