Costs of Environmental and Performance Attributes of the Colorado Electricity Sector

Electricity Journal

Volumn 24, Issue 9, 2011, Pages 75-83

  Keske, Catherine M H ^a  

^a Veterinary Dentistry and Oral Surgery   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

CARBON DIOXIDE; MERCURY COMPOUNDS; SULFUR DIOXIDE;

DAMAGE ESTIMATES; ELECTRICITY SECTOR; ELECTRICITY-GENERATION; ENVIRONMENTAL POLLUTANTS; FINE PARTICULATE MATTER; PERFORMANCE; SECONDARY DATUM;

NITROGEN OXIDES;

EID: 81155137789     PISSN: 10406190     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.tej.2011.09.020     Document Type: Article

References (39)

1. In the words of Gov. John Hickenlooper during his gubernatorial acceptance speech in November 2010, Colorado policymakers envision Colorado to be the ''center of the Clean Energy Economy.'' Mark Jaffe, Nation Watching Xcel's Plans for Aging Coal- Fired Power Plants, DENVER POST, Nov. 7, 2010, at A-1, at http://www.denverpost.com/business/ci_16539428. The outgoing governor, Bill Ritter, Jr., has also declared energy reform as his legacy. See Bill Ritter, Jr., A Blueprint for a New Energy Economy, Jan. 2011 at http://rechargecolorado.com/images/uploads/pdfs/Ritter_Energy_Book_F_ForWeb.pdf.Thus, Colorado might serve as a case example for progressive electricity generation policy.
2. Peter Z. Grossman, When Is Command-and-Control Efficient? Institutions, Technology and the Comparative Efficiency of Alternative Regulatory Regimes for Environmental Protection (with Daniel H. Cole), WISCONSIN LAW REV., Nov. 1999. Reprinted in LAND USE and ENVIRONMENTAL LAW REV., 31, 2001, at http://digitalcommons.butler.edu/cgi/viewcontent.cgi?article=1028andcontext=cob_papersandsei-redir=1#search=the+blunt+force+of+regulatory+policy+does+not+necessarily+lead+to+more+a+more+efficient+use+of+resources.
3. Catherine M.H. Keske, Terrence Iverson, Samuel Evans and Gregory Graff, Designing a Technology-Neutral, Benefit Pricing Policy for the Electric Power Sector in Colorado, Technical Report Submitted to Colorado Governor's Energy Office, Dec. 10, 2010, at http://soilcrop.colostate.edu/keske/index.html.
4. Paul L. Joskow, Weighing Environmental Externalities: Let's Do It Right! 5 ELEC. J., June 1992, at 53-67.
5. See Dallas Burtraw, W. Harrington, et al., Optimal 'Adders' for Environmental Damage by Public Utilities, 29(3) J. ENVIRONMENTAL ECON. and MGMT., 1995, at S1-S19, and M.A. Freeman, Dallas Burtraw, W. Harringon and A. Krupnick, (1992) Weighing Environmental Externalities: How to Do It Right, ELEC. J., June 1992, at 18-25.
6. See Dallas Burtraw, Arthur G. Fraas and Nathan Richardson, Green House Gas Regulation Under the Clean Air Act: A Guide for Economists, Resources for the Future, Document No. 11-08, 2011, at http://www.rff.org/documents/RFF-DP-11-08.pdf.
7. See U.S. Environmental Protection Agency, Policy Assessment for the Review of the Particulate Matter National Ambient Air Quality Standards, Second External Review Draft, June 2010.
8. See Dana L. Hoag, Randall Boone and Catherine M.H. Keske, The Agricultural Cost to Coexist with Wildlife in Colorado, HUMAN DIMENSIONS OF WILDLIFE 16(5) 2011 at 319-329. Methodologies for calculating marginal damage functions may include the statistical value of a life, a dose-response function, damages that may be incurred by regulatory action, or opportunity cost of a resource relative to highest and best use. Readers desiring a more in-depth description behind the respective methodologies can review J. Lesser, D. Dodds and R. Zerbe, Environmental Economics and Policy (1997);
9. J.M. Fang and P.S. Galen Issues and Methods in Incorporating Environmental Externalities into the Integrated Resource Planning Process, National Renewable Energy Laboratory Technical Report No. 461-6684, Golden, CO (1994). The calculations in this report do not reflect the social value of energy security or global climate change, although a case can be made to include these respective measures. For information on how to include the latter, see O. Hohmeyer, Renewables and the Full Costs of Energy, 20(4) ENERGY POLICY (1992) at 365-375; or D.M. Kammen and S. Pacca, Assessing the Costs of Electricity 29(1) ANNUAL REV. OF ENVIRONMENT and RESOURCES (2004) at 301-344.
10. V.V. Lissianski, P.M. Maly, et al. (2009) Mercury Reduction System and Method in Combustion Flue Gas Using Staging, U.S. Patent Office, General Electric Company, US 7,600,479 B2.
11. N. Pirrone and R. Mason, Mercury Fate and Transport in the Global Atmosphere: Emissions, Measurements, and Models (2009).
12. Colorado Mercury Reduction Regulation for EGUs 2012, 2014, 2018, summarized at http://www.dora.state.co.us/puc/presentations/InformationMeetings/CleanAir/04-26-10CIM_RH_HB1365-AirQuality.pdf.
13. Michael T. Rossler, The Electric Power Industry and Mercury Regulation: Protective, Cost-Effective, and Market- Based Solutions, EM: 15-21 (2002).
14. United Nations Global Partnership for Mercury Transport and Fate Research (2010), at http://www.chem.unep.ch/mercury/UNEPMFTP_Work%20Plan_revised.pdf.
15. Joseph V. Spadaro and Ari Rabl, Pathway Analysis for Population-Total Health Impacts of Toxic Metal Emissions 24 RISK ANAL. (2004), at 1121-1141.
16. Massimo Pizzol, Marianne Thomsen, Lise M. Frohm andMikael S. Andersen, External Costs of Atmospheric Pb Emissions: Valuation of Neurotoxic Impacts Due to Inhalation 9(1) ENVIRONMENTAL HEALTH (2010) at 1-9.
17. Interested readers should review A. Scott Denning, Melville Nicholls, Lara Prihodko, Ian Baker, Pier-Luigi Vidale, Kenneth Davis and Peter Bakwin, Simulated Variations in Atmospheric CO2 over a Wisconsin Forest Using a Coupled Ecosystem-Atmosphere Model 9 (9) 2010 GLOBAL CHANGE BIOLOGY, at 1241-1250.
18. United States Government Interagency Workgroup on Social Cost of Carbon, Technical Support Document: Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866, Feb. 2010, at http://www.epa.gov/otaq/climate/regulations/scc-tsd.pdf.
19. The FUND model is based upon the work and papers published by R. Tol, The Marginal Damage Costs of Carbon Dioxide Emissions: An Assessment of the Uncertainties 33 (16) 2005 ENERGY POLICY 2064-2074
20. R. Tol, The Economic Effects of Climate Change 23 (2) 2009, J. ECON. PERSPECTIVES, at 29-51;
21. R. Tol, Estimates of the Damage Costs of Climate Change, Part I: Benchmark Estimates 21 (1) 2002, ENV. and RESOURCE ECON., at 47-73;
22. R. Tol, Estimates of the Damage Costs of Climate Change, Part II, Dynamic Estimates 21 (2) 2002 ENV. and RESOURCE ECON. at 135-160.
23. The DICE model is based upon the work and papers published by W. Nordhaus and J. Boyer, Warming the World: Economics Models of Global Warming (2000) and W. Nordhaus, A Question of Balance: Weighing the Options on Global Warming Policies (2008).
24. The PAGE model is based upon the work and papers published by C. Hope, The Marginal Impact of CO2 from An Integrated Assessment Model Incorporating the IPCC's Five Reasons for Concern 6 (1) 2006 INTEG. ASSESSMENT, at 19-56;
25. C. Hope, Optimal Carbon Emissions and the Social Cost of Carbon over Time Under Uncertainty 8 (1) 2008 INTEG. ASSESSMENT, at 107-122.
26. See Denise L. Mauzerall, B. Sultan, N. Kim and D. Bradford (2005), NOx Emissions from Large Point Sources: Variability in Ozone Production, Resulting Health Damages and Economic Costs 39 (16) 2005 ATMOSPHERIC ENVIRONMENT at 2851-2866.
27. Lisa Ann Miller, Acting Chief Medical Officer, Colorado Dept. of Public Health and Environment. Docket No. 10M-245E In the Matter of Commission Consideration of Public Service Company of Colorado Plan in Compliance with House Bill 10-1365, 'Clean Air-Clean Jobs Act,' Sept. 17, 2010.
28. Paulette Middleton, Air Quality Analyst, Western Resource Advocates, Docket No. 10M-245E In the Matter of Commission Consideration of Public Service Company of Colorado Plan in Compliance with House Bill 10-1365, 'Clean Air-Clean Jobs Act,' Sept. 17, 2010.
29. Examples include:Dallas Burtraw, R. Bharvirkar, et al., Uncertainty and the Net Benefits of Emissions Reductions of Nitrogen Oxides from Electricity Generation 79 (3) 2003 LAND ECON. at 382-401
30. S. Kumar and S. Managi, Sulfur Dioxide Allowances: Trading and Technological Progress, 69 (3) 2010 ECOLOGICAL ECON. at 623-631.
31. N.A. Muller and R. Mendelsohn, Weighing the Value of a Ton of Pollution 33 (2) 2010 REGULATION, at 20-24.
32. N.Z. Muller and R. Mendelsohn, Measuring the Damages of Air Pollution in the United States 54 (1) 2007 J. ENVIRONMENTAL ECON. and MGMT., at 1-14.
33. N. Muller, D. Tong and R. Mendelsohn, Regulating NOx and SO2 Emissions in Atlanta 9 (2) 2009 THE B.E. J. ECON. and POLICY, at 1-30.
34. Readers interested in better understanding the science behind nitrogen cycling and deposition process along Colorado's Front Range are encouraged to review IMPROVE (Interagency Monitoring of Protected Visual Environments) educational materials (2009). Adverse impacts of NOx in natural areas are echoed in the Rocky Mountain National Park Nitrogen Deposition Reduction Plan, a joint effort between the CDPHE, the NPS, and the EPA (2007).
35. John B. Loomis and Catherine M. Keske, Peak Load Pricing of Colorado's Peaks:Influence of Substitutes on Valuation and Use of Price as a Management Tool 90 (2009) J. ENVIRONMENTAL MGMT., at 1751-1760.
36. Leland B. Deck, Managing Economist, Stratus Consulting Inc., Docket No. 10M-245E, In the Matter of Commission Consideration of Public Service Company of Colorado Plan in Compliance with House Bill 10-1365, 'Clean Air-Clean Jobs Act,' Sept. 17, 2010.
37. C. Arden Pope III, Richard T. Burnett, Michael J. Thun, Eugenia E. Calle, Daniel Krewski, Kazuhiko Ito and George D. Thurston, Lung Cancer, Cardiopulmonary Mortality, and Long- Term Exposure to Fine Particulate Air Pollution 287 (9) 2002 J. AM. MEDICAL ASSN., at 1132-1141.
38. Michael Milligan and Brendan Kirby, Calculating Wind Integration Costs: Separating Wind Energy Value from Integration Cost Impacts, National Renewable Energy Laboratory, Technical Report No. 550-46275, Golden, CO, 2009.
39. R.M. Zavadil and J. King, Wind Integration Study for Public Service Company of Colorado Addendum: Detailed Analysis of 20% Wind Penetration, Xcel Energy, Denver, 2008.