FIGURE 2-8 Regional distribution of air-pollution damages from coal generation per kWh in 2005 (U.S. dollars, 2007). Damages related to climate change are not included.

FIGURE 2-8 Regional distribution of air-pollution damages from coal generation per kWh in 2005 (U.S. dollars, 2007). Damages related to climate change are not included.

Of the 14 categories of criteria-air-pollutant damages included in APEEP, 6 relate to human health and the remainder to physical impacts (materials damage, ozone damage to crops and forests, the cost of foregone recreation due to SO2, NOx, ozone, and VOCs, and the cost of reduced visibility due to airborne particulate matter).

Sensitivity Analysis and Comparison with the Literature

The results of any analysis of the damages associated with air-pollution emissions depend critically on (1) the size of the emissions reduction analyzed; (2) the air-quality model used to translate emissions into ambient air quality; (3) the choice of concentration-response function for premature mortality and (4) the VSL used to monetize premature mortality. Premature mortality constitutes 94% of the damages reported above. When a VSL of $2 million is used (Mrozek and Taylor 2002), premature mortality constitutes 85% of total damages, and the weighted-average cost per kWh falls to 1.2 cents. If we had chosen to use Dockery et al. (1993) as the



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