Federal legislation mandates substantial reduction of air pollution emissions from electric utilities. Utilities in Appalachia that use locally mined high-sulfur coal must choose among abatement options such as fuel mixing and smokestack scrubbing technologies. Wet scrubbers are the most frequently adopted abatement technology in Ohio. This paper investigates beneficial reuses of by-product from wet scrubbers. By-product is most often disposed of in landfills, resulting in large external costs. We combine social cost and benefit transfers with a linear optimization model to investigate potential benefits of by-product recycling. Results suggest that significant incentives exist to find beneficial uses for by-product.
