Controlling Mercury Emission for China's Coal Fired Electricity Plants: an Economic Analysis

Abstract

Abstract This study aims to identify the least-cost strategy for controlling the emission of mercury from coal-fired electricity generation plants in China, which helps to provide technical guidance to firms and decision making basis for designing mercury control strategy and policy for the government. Based on the analysis and evaluation of technical and economic features of the available technologies/alternatives, this study develops a Cost -Effectiveness Oriented Model (CEOM) at enterprises level. A least cost solution for each type of plants is estimated. Further, sector-level mercury abatement cost is estimated by grouping the plants by size and existing technologies, giving concern of the possible policy scenarios which based on proportional allocation of the emission control targets and based on the marginal abatement cost allocation, as well as the existing SO2 control policies. It concludes that by combining the pretreatment technology, particulates removing technology, and SO2 control technology, as well as the NOx control technologies, China can control over 90% of emission. At least 12% of the mercury can be removed by strictly enforcing the Two Control Zone's policy, and the co-benefit is significant by introducing multiple pollutants control. A sets of policy recommendation is concluded, that China should enforce SO2 control policy more effectively, the multiple pollution control strategy should be developed, and a emission trading scheme can provide plant flexibility to compliance and can generate cost saving.