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Economic Impacts of Carbon Taxes and Biomass Feedstock Usage in Southeastern United States Coal Utilities

Published online by Cambridge University Press:  28 April 2015

Burton C. English ,
Kim Jensen ,
Jamey Menard ,
Marie E. Walsh ,
Craig Brandt ,
Jim Van Dyke  and
Stanton Hadley
Burton C. English
Affiliation:
Department of Agricultural Economics, University of Tennessee, Knoxville, TN
Kim Jensen
Affiliation:
Department of Agricultural Economics, University of Tennessee, Knoxville, TN
Jamey Menard
Affiliation:
Department of Agricultural Economics, University of Tennessee, Knoxville, TN
Marie E. Walsh
Affiliation:
Department of Agricultural Economics, University of Tennessee, Knoxville, TN
Craig Brandt
Affiliation:
Environmental Sciences Division, Oak Ridge National Laboratory, Oak Ridge, TN
Jim Van Dyke
Affiliation:
Environmental Sciences Division, Oak Ridge National Laboratory, Oak Ridge, TN
Stanton Hadley
Affiliation:
Engineering Science and Technology Division, Oak Ridge National Laboratory, Oak Ridge, TN
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Abstract

The Southeastern United States depends on coal to supply 60% of its electricity needs. The region leads in CO2 emissions and ranks second in emissions of SO2 and NO2. Compared with coal, biomass feedstocks have lower emission levels of sulfur or sulfur compounds and can potentially reduce nitrogen oxide emissions. This study examines the economic impacts of cofiring biomass feedstocks with coal in coal-fired plants under three emission credit and two cofiring level scenarios. Economic impacts are estimated for producing, collecting, and transporting feedstock; retrofitting coal-fired utilities for burning feedstock; operating cofired utilities; and coal displaced from burning the feedstock.

Keywords

biomasscoalcofiringeconomic impactselectricityinput-output modelQ42R15
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 39 , Issue 1 , April 2007 , pp. 103 - 119
Copyright
Copyright © Southern Agricultural Economics Association 2007

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