Analysis of financial impacts caused by pollution from thermal power plants in Brazilian public health system

Abstract

Hydroelectric plants are responsible for generating about 85% of the electricity produced in Brazil. However, after a severe drought has affected the country in 2014 and 2015, the Brazilian energy matrix had a momentary change. It was necessary to dispatch thermal plants which were primarily used only to supplement power generation. Meanwhile, this type of generation plant significantly contributes to burning fossil fuels. Gas emission intensifies acid rain, global warming and is responsible for climate change, which ultimately deteriorates human health. There are many studies that correlate pollution escalation with increased hospital admissions due to respiratory and cardiovascular problems, raising the costs of public health spending. This study aims to establish a method to estimate economic advantages of solar distributed micro generation for homes concerning to the avoided amount spent by the government to mitigate negative effects, specifically pollution-related health problems, from the use of thermal plants. Finally, through a case study, this paper suggests some incentives that could be offered to citizens who had installed solar energy systems in their homes, once they would contribute to reduce public health costs.