The Health Impact and External Cost of Electricity Production

Abstract

The use of fossil fuels, which still dominate global primary energy consumption, results not only in emissions of greenhouse gas but also in emissions of pollutants such as SO2, NOx, and PM. Damage caused by air pollution can be expressed in monetary terms in the form of external costs to society. The goal of this paper is to answer the following questions: How much will the energy sector’s emissions change as a result of decarbonization? What is the estimated level of external costs related to human health in future energy scenarios? How large are the estimated external costs compared to the planned investments in this sector? The study conducted for the period 2018–2050 used the impact pathway approach and covered the centralized power and heat generation sector in Poland. The reported values of the concentration–response functions that relate human exposure to air pollution with health impact were reviewed. The results show that external costs decrease from an estimated annual level in the range of EUR 782–1911 million in 2018 to EUR 36–876 million in 2050. The cumulative value of avoided external costs between 2018 and 2050 is significantly lower than the planned capital expenditures in the energy sector in Poland.

Keywords

• power sector
• health impact
• emissions
• models
• energy scenarios