Ancillary benefits of reduced air pollution in the US from moderate greenhouse gas mitigation policies in the electricity sector
- Resources for the Future, 1616 P Street, NW, Washington, DC 20036, USA
- Received 3 January 2001, Revised 13 April 2001, Available online 25 February 2003
Abstract
Actions to slow atmospheric accumulation of greenhouse gases also would reduce conventional air pollutants yielding “ancillary” benefits that tend to accrue locally and in the near-term. Using a detailed electricity model linked to an integrated assessment framework to value changes in human health, we find a tax of $25 per metric ton of carbon emissions would yield NOx-related health benefits of about $8 per metric ton of carbon reduced in the year 2010 (1997 dollars). Additional savings of $4–$7 accrue from reduced investment in NOx and SO2 abatement in order to comply with emission caps. Total ancillary benefits of a $25 carbon tax are $12–$14, which appear to justify the costs of a $25 tax, although marginal benefits are less than marginal costs. At a tax of $75, greater total benefits are achieved but the value per ton of carbon reductions remains roughly constant at about $12.
JEL classification
- H23;
- I18;
- Q48
Keywords
- Climate;
- Ancillary benefits;
- Nitrogen oxides;
- Sulfur dioxide;
- Carbon dioxide;
- Particulates;
- Health
Copyright © 2003 Elsevier Science (USA). All rights reserved.