Reducing Greenhouse Gas Emissions and Improving Air Quality
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1 0 4
It is true that these transition efforts would cost money. Minimizing the
cost of mitigation and maximizing the benefits of actions that are beneficial
have been addressed (Gillingham and Stock, 2018). One way to describe
these cost/ benefit relationships is in terms of how much it would cost to
eliminate one ton of carbon dioxide emissions which would otherwise
occur. The concept is that these cost estimates incorporate the replacement
of a fully paid for coal plant with a new plant (Gillingham and Stock, 2018).
Cost estimates to reduce one ton of carbon dioxide emissions include $25 for
onshore wind, $27 for natural gas combined cycle, and $29 for utility- scale
solar photovoltaics.
In all of the above estimates, the dynamics of costs are impacted by research
and development and by the evolution of manufacturing operations. An analysis of solar- generated electricity with solar panels shows that there were
significant benefits to having incentives to encourage the purchase of solar
panels, and from supporting research to develop more efficient solar photovoltaic technologies. As a result, the prices of solar panels have decreased
more than 70% (Gillingham and Stock, 2018). Therefore, the $29/ ton reported
earlier is almost certainly lower now because of the very substantial progress
in cost reduction that has been accomplished.
Economic issues related to EVs are also included in Gillingham and Stock
(2018), but the numbers reported may similarly be out of date now. The
dynamic decreases in prices due to battery developments have particularly
impacted progress on EV innovations and sales. The number of EV sales and
operations has changed because of competition, battery developments, and
policies to encourage EV purchases. Some manufacturers are transitioning to
new EV models because they do not want to be left behind, and they want
to have the mix of models needed to sell in China. Economic incentives in
many other countries have been successful in increasing the sales of EVs (see
Chapter 4).
There are also other methods to reduce carbon emissions, and some of these
are very inexpensive per ton of carbon dioxide. Reforestation of land has a
range of values from $1– 10. The Clean Power Plan has an estimated value
of $11. Renewable portfolio standards have a range from $0– 190. This large
range reflects the fact that the economics of wind and solar energy depend on
location (Gillingham and Stock, 2018).
11.3 Costs and Benefits Associated with Improving Air Quality
The costs and benefits associated with improving air quality overlap substantially with those associated with reducing greenhouse gas emissions (and
climate change generally), but there are some distinct issues for air quality.
The specific air quality issues tend to involve more direct and immediate
104
1 0 4
It is true that these transition efforts would cost money. Minimizing the
cost of mitigation and maximizing the benefits of actions that are beneficial
have been addressed (Gillingham and Stock, 2018). One way to describe
these cost/ benefit relationships is in terms of how much it would cost to
eliminate one ton of carbon dioxide emissions which would otherwise
occur. The concept is that these cost estimates incorporate the replacement
of a fully paid for coal plant with a new plant (Gillingham and Stock, 2018).
Cost estimates to reduce one ton of carbon dioxide emissions include $25 for
onshore wind, $27 for natural gas combined cycle, and $29 for utility- scale
solar photovoltaics.
In all of the above estimates, the dynamics of costs are impacted by research
and development and by the evolution of manufacturing operations. An analysis of solar- generated electricity with solar panels shows that there were
significant benefits to having incentives to encourage the purchase of solar
panels, and from supporting research to develop more efficient solar photovoltaic technologies. As a result, the prices of solar panels have decreased
more than 70% (Gillingham and Stock, 2018). Therefore, the $29/ ton reported
earlier is almost certainly lower now because of the very substantial progress
in cost reduction that has been accomplished.
Economic issues related to EVs are also included in Gillingham and Stock
(2018), but the numbers reported may similarly be out of date now. The
dynamic decreases in prices due to battery developments have particularly
impacted progress on EV innovations and sales. The number of EV sales and
operations has changed because of competition, battery developments, and
policies to encourage EV purchases. Some manufacturers are transitioning to
new EV models because they do not want to be left behind, and they want
to have the mix of models needed to sell in China. Economic incentives in
many other countries have been successful in increasing the sales of EVs (see
Chapter 4).
There are also other methods to reduce carbon emissions, and some of these
are very inexpensive per ton of carbon dioxide. Reforestation of land has a
range of values from $1– 10. The Clean Power Plan has an estimated value
of $11. Renewable portfolio standards have a range from $0– 190. This large
range reflects the fact that the economics of wind and solar energy depend on
location (Gillingham and Stock, 2018).
11.3 Costs and Benefits Associated with Improving Air Quality
The costs and benefits associated with improving air quality overlap substantially with those associated with reducing greenhouse gas emissions (and
climate change generally), but there are some distinct issues for air quality.
The specific air quality issues tend to involve more direct and immediate