Abstract
In this study, the structures of external costs are built in line with coal-fired and biomass power plant life cycle activities in Northeast China. The external cost of coal-fired and biomass power plants was compared, using the lifecycle approach. In addition, the external costs of a biomass power plant are calculated for each stage for comparison with those of a coal-fired power plant. The results highlight that the external costs of a coal-fired plant are 0.072 US $/kWh, which are much higher than that of a biomass power plant, 0.00012 US$/kWh. The external cost of coal-fired power generation is as much as 90% of the current price of electricity generated by coal, while the external cost of a biomass power plant is 1/1000 of the current price of electricity generated by biomass. In addition, for a biomass power plant, the external cost associated with SO2, NOX, and PM2.5 are particularly lower than those of a coal-fired power plant. The prospect of establishing precise estimations for external cost mechanisms and sustainable energy policies is discussed to show a possible direction for future energy schemes in China. The paper has significant value for supporting the biomass power industry and taxing or regulating coal-fired power industry to optimize the energy structure in China.
Highlights
The use of coal remains dominant in electricity generation in China, the world’s largest producer and consumer of coal [1]
Comparing the external costs of a coal-fired power plant and biomass power plant with the current electricity prices, respectively, the external cost of coal-fired power plant is almost 90% of the current price of coal, while the external costs of biomass power plant is 1/1,000 of the current price of electricity generated by biomass power plants
The structures of external costs are built in line with coal-fired and biomass power plant life cycle activities
Summary
The use of coal remains dominant in electricity generation in China, the world’s largest producer and consumer of coal [1]. China’s rapid economic growth is heavily dependent on cheap energy, with over 70% of its energy needs met by coal. This apparently cheap fuel has grave repercussions, as reliance on coal comes with heavy environmental and social costs. Every step in the process of coal-fired power generation, from mining to combustion, causes severe damage to China’s environment. The low price of electricity accounts for just a fraction of its true total costs; society pays the external costs of mining and burning coal. The burning of coal emits sulfur and nitrogen oxides (causing acid rain), particulates, mercury and other toxic metals [3].
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