Air pollution emissions and damages from energy production in the U.S.: 2002–2011

• Published in: Energy policy Vol. 90; pp. 202 - 211
• Main Authors: Jaramillo, Paulina, Muller, Nicholas Z.
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01-03-2016; Elsevier Science Ltd
• Subjects: Accounting; Air pollution; Airborne particulates; Ammonia; Coal industry; Coal mines; Coal mining; Electric power; Electric power generation; Electricity; Electricity generation; Emission standards; Emissions; Emissions control; Energy; Energy policy; Environmental impact; Environmental protection; Environmental regulations; Heterogeneity; Location; Mining; Mining industry; Oil and gas extraction; Oil refineries; Oil refining; Petroleum; Policy making; Pollutants; Pollution; Power generation; Production; Refineries; Regulation; Social costs; Spatial analysis; Spatial discrimination; Spatial heterogeneity; Strip mining; Studies; Sulfur dioxide; United States; VOCs; Volatile organic compounds; United States > US; Air pollution; Coal mining; Oil and gas extraction; Social costs; Oil refining; Power generation
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2015.12.035

This paper uses air pollution emissions data for the years 2002, 2005, 2008, and 2011 to estimate monetary damages due to air pollution exposure for PM2.5, SO2, NOx, NH3, and VOC from electric power generation, oil and gas extraction, coal mining, and oil refineries. In 2011, damages associated with emissions from these sectors totaled 131 billion dollars (in 2000$), with SO2 emissions from power generation being the largest contributors to social damages. Further, damages have decreased significantly since 2002, even as energy production increased, suggesting that, among other factors, policies that have driven reductions in emissions have reduced damages. The results of this analysis highlight the spatial heterogeneity of the impacts associated with the emissions of a given pollutant. In the past, environmental regulations have assumed that the benefits of air emissions reductions are homogenous across source location. This analysis suggests that policy designs that account for spatial differences in the impacts of air emissions could result in more effective environmental regulation. Accounting for such spatial heterogeneity in the benefits of policies would be akin to accounting for differences in compliances costs across states, which the EPA did when establishing the state emissions standards for the Clean Power Plan rule.
•Social costs of emissions from energy sector decreased between 2002 and 2011.•Emissions from power generation are the major contributors to social costs.•Policies to control SO2 emissions may produce the largest social costs reductions.