Assessing the externalities of electricity generation in the Midwest

This paper summarizes the research strategy adopted in developing separate estimates of environmental costs for two major private utility natural gas and coal systems in Wisconsin and Minnesota. One of the systems, North States Power Company in Minnesota, is used to describe the model structure. Particular focus was given to developing methods to assist in the transfer of damage function and monetary valuation estimates to other locations and contexts. It was found that of major importance to the damage estimates is the location of power plants relative to people and resources. Second in importance is the types of effects associated with a given pollutant. Particulates (PMS) had the highest damage on a per-ton basis, with Pb close behind, and NOx, O3, SO2 and CO having smaller damages. Health, materials and visibility damages follow clear geographic patterns, with damages being higher in more urban areas. 50 refs., 3 figs., 4 tabs