External cost of air pollution from thermal power plants: case of Greece

Abstract

PurposeThe purpose of the paper is to quantify the external cost of airborne pollutants (i.e. sulphur and nitrogen oxides, carbon dioxide, and particulate matters) generated during electricity production in the thermal power plants in Greece.Design/methodology/approachThis paper applies the EcoSenseLE online tool to examine the external cost of air pollution generated in all thermal power stations of 50 MW or higher capacity in Greece. The external cost has been calculated for five damage categories and by fuel types. Data for 2004 has been used and projections up to 2030 have been made.FindingsThis research finds that the external cost of the natural gas power plants is €13.87 per MWh which is the lowest for the system while the cost is estimated at €43.89 per MWh for lignite plants. The external cost of air pollution from the power sector in 2004 has been estimated at €1.89 billion and is expected to increase to €2.48 billion in 2025. The marginal external cost at the plant level varies from €8.76 to 93.15 per MWh. This variation is due to the quality of fuel, and the technology of plants.Research limitations/implicationsThe general limitation of the external cost methodology applies to this work as it uses the standard method developed for the ExternE project. Similarly, the data limitations as well as assumptions related to the costs and exclusions/omissions of cost elements affect the results.Practical implicationsThe estimation of external costs is important for decision makers in the electricity sector to develop strategies for emission reduction and to develop environmental and energy policies.Originality/valueThe contribution of the paper lies in its use of recent data for the estimation and projection of the external costs until 2030. This allows an understanding of the changes in the external costs from power generation in the country.