MA Economics

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Externalities of different coal power technologies: a closer look at coal power in Western Visayas
(2018-07) Fernandez, Elaine Grace B.; Jandoc, Karl Robert L.
This study attempts to value the externalities generated by coal power plants in Western Visayas, and determine the efficiency implications of valuing these externalities. Valuing externalities can help determine the appropriate environmental policy, such as the amount of tax that will correct for the inefficiency. Benefit Transfer Method (BTM) specifically unit value transfer, was used to estimate the values of pollution damages. Furthermore, this study looked at the emissions caused by three major advanced coal power technologies: Pulverized Fuel (PF), Circulating Fluidized Bed (CFB) and Integrated Gasification Combined Cycle (IGCC). Examining GHGs emissions, it shows that PF and CFB have comparable emissions while IGCC has the lowest emission rate. The two existing coal power plants in Western Visayas utilize CFB technology, which has a higher fuel flexibility and require a lower capital cost. Total externalities range from PhP 0.07577/kWh to PhP 0.44058/kWh. This can increase the current effective electricity rate by 0.65 to 4.1 percent.