National Academies Press: OpenBook
Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
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HIDDEN COSTS OF ENERGY

UNPRICED CONSEQUENCES OF ENERGY PRODUCTION AND USE

Committee on Health, Environmental, and Other External Costs and Benefits of Energy Production and Consumption

Board on Environmental Studies and Toxicology

Division on Earth and Life Studies

Board on Energy and Environmental Systems

Division on Engineering and Physical Sciences

Board on Science, Technology, and Economic Policy

Policy and Global Affairs Division

NATIONAL RESEARCH COUNCIL
OF THE NATIONAL ACADEMIES

THE NATIONAL ACADEMIES PRESS

Washington, D.C.
www.nap.edu

Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
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THE NATIONAL ACADEMIES PRESS
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NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance.

This project was supported by Contract No. TOS-08-038 between the National Academy of Sciences and the U.S. Department of the Treasury. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the view of the organizations or agencies that provided support for this project.

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Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
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THE NATIONAL ACADEMIES

Advisers to the Nation on Science, Engineering, and Medicine


The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Ralph J. Cicerone is president of the National Academy of Sciences.


The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. Charles M. Vest is president of the National Academy of Engineering.


The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Harvey V. Fineberg is president of the Institute of Medicine.


The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy’s purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Ralph J. Cicerone and Dr. Charles M. Vest are chair and vice chair, respectively, of the National Research Council.


www.national-academies.org

Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
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COMMITTEE ON HEALTH, ENVIRONMENTAL, AND OTHER EXTERNAL COSTS AND BENEFITS OF ENERGY PRODUCTION AND CONSUMPTION

Members

JARED L. COHON (Chair),

Carnegie Mellon University, Pittsburgh, PA

MAUREEN L. CROPPER (Vice Chair),

University of Maryland, College Park

MARK R. CULLEN,

Stanford University School of Medicine, Stanford, CA

ELISABETH M. DRAKE (retired),

Massachusetts Institute of Technology, Auburndale, MA

MARY R. ENGLISH,

University of Tennessee, Knoxville

CHRISTOPHER B. FIELD,

Carnegie Institution of Washington, Stanford, CA

DANIEL S. GREENBAUM,

Health Effects Institute, Boston, MA

JAMES K. HAMMITT,

Harvard University Center for Risk Analysis, Boston, MA

ROGENE F. HENDERSON,

Lovelace Respiratory Research Institute, Albuquerque, NM

CATHERINE L. KLING,

Iowa State University, Ames

ALAN J. KRUPNICK,

Resources for the Future, Washington, DC

RUSSELL LEE,

Oak Ridge National Laboratory, Oak Ridge, TN

H. SCOTT MATTHEWS,

Carnegie Mellon University, Pittsburgh, PA

THOMAS E. MCKONE,

Lawrence Berkeley National Laboratory, University of California, Berkeley, CA

GILBERT E. METCALF,

Tufts University, Medford, MA

RICHARD G. NEWELL,1

Duke University, Durham, NC

RICHARD L. REVESZ,

New York University School of Law, New York

IAN SUE WING,

Boston University, Boston, MA

TERRANCE G. SURLES,

University of Hawaii at Manoa, Honolulu, HI

Consultants

TODD D. CAMPBELL,

Iowa State University, Ames

MIKHAIL V. CHESTER,

University of California, Berkeley

PHILIP W. GASSMAN,

Iowa State University, Ames

NICHOLAS Z. MULLER,

Middlebury College, Middlebury, VT

1

Resigned August 2, 2009, to accept appointment as administrator of the U.S. Energy Information Administration.

Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
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Staff

RAYMOND WASSEL, Project Director,

Board on Environmental Studies and Toxicology

STEVE MERRILL, Director,

Board on Science, Technology, and Economic Policy

JAMES ZUCCHETTO, Director,

Board on Energy and Environmental Systems

DAVID POLICANSKY, Scholar

KEEGAN SAWYER, Associate Program Officer

RUTH CROSSGROVE, Senior Editor

MIRSADA KARALIC-LONCAREVIC, Manager,

Technical Information Center

RADIAH ROSE, Editorial Projects Manager

JOHN BROWN, Program Associate

PATRICK BAUR, Research Assistant

Sponsor

U.S. DEPARTMENT OF THE TREASURY

Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
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BOARD ON ENVIRONMENTAL STUDIES AND TOXICOLOGY

Members

ROGENE F. HENDERSON (Chair),

Lovelace Respiratory Research Institute, Albuquerque, NM

RAMÓN ALVAREZ,

Environmental Defense Fund, Austin, TX

TINA BAHADORI,

American Chemistry Council, Arlington, VA

MICHAEL J. BRADLEY,

M.J. Bradley & Associates, Concord, MA

DALLAS BURTRAW,

Resources for the Future, Washington, DC

JAMES S. BUS,

Dow Chemical Company, Midland, MI

JONATHAN Z. CANNON,

University of Virginia, Charlottesville

GAIL CHARNLEY,

HealthRisk Strategies, Washington, DC

RUTH DEFRIES,

Columbia University, New York, NY

RICHARD A. DENISON,

Environmental Defense Fund, Washington, DC

H. CHRISTOPHER FREY,

North Carolina State University, Raleigh

J. PAUL GILMAN,

Covanta Energy Corporation, Fairfield, NJ

RICHARD M. GOLD,

Holland & Knight, LLP, Washington, DC

LYNN R. GOLDMAN,

Johns Hopkins University, Baltimore, MD

JUDITH A. GRAHAM (retired),

Pittsboro, NC

HOWARD HU,

University of Michigan, Ann Harbor

ROGER E. KASPERSON,

Clark University, Worcester, MA

TERRY L. MEDLEY,

E.I. du Pont de Nemours & Company, Wilmington, DE

JANA MILFORD,

University of Colorado at Boulder, Boulder

DANNY D. REIBLE,

University of Texas, Austin

JOSEPH V. RODRICKS,

ENVIRON International Corporation, Arlington, VA

ROBERT F. SAWYER,

University of California, Berkeley

KIMBERLY M. THOMPSON,

Harvard School of Public Health, Boston, MA

MARK J. UTELL,

University of Rochester Medical Center, Rochester, NY

Senior Staff

JAMES J. REISA, Director

DAVID J. POLICANSKY, Scholar

RAYMOND A. WASSEL, Senior Program Officer for Environmental Studies

SUSAN N.J. MARTEL, Senior Program Officer for Toxicology

ELLEN K. MANTUS, Senior Program Officer for Risk Analysis

EILEEN N. ABT, Senior Program Officer

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RUTH E. CROSSGROVE, Senior Editor

MIRSADA KARALIC-LONCAREVIC, Manager,

Technical Information Center

RADIAH ROSE, Manager,

Editorial Projects

Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
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BOARD ON ENERGY AND ENVIRONMENTAL SYSTEMS

Members

DOUGLAS M. CHAPIN (Chair),

MPR Associates, Inc., Alexandria, VA

ROBERT W. FRI (Vice Chair),

Resources for the Future, Bethesda, MD

RAKESH AGRAWAL,

Purdue University, West Lafayette, IN

WILLIAM F. BANHOLZER,

the Dow Chemical Company, Midland, MI

ALLEN J. BARD,

University of Texas, Austin, TX

ANDREW BROWN, JR.,

Delphi Corporation, Troy, Michigan

MARILYN BROWN,

Oak Ridge National Laboratory, Oak Ridge, TN, and Georgia Institute of Technology, Atlanta, GA

MICHAEL L. CORRADINI,

University of Wisconsin, Madison

PAUL A. DECOTIS,

Long Island Power Authority, Albany, NY

E. LINN DRAPER, JR. (retired)

American Electric Power, Inc., Lampasas, TX

CHARLES H. GOODMAN (retired),

Southern Company Services, Inc., Birmingham, AL

SHERRI GOODMAN,

CNA, Alexandria, VA

NARAIN HINGORANI, Consultant,

Los Altos Hills, CA

WILLIAM F. POWERS (retired),

Ford Motor Company, Ann Arbor, MI

MICHAEL P. RAMAGE (retired),

ExxonMobil Research and Engineering Company, Moorestown, NJ

DAN REICHER,

Google.org, Warren, VT

MAXINE L. SAVITZ (retired),

Honeywell, Inc., Los Angeles, CA

MARK H. THIEMENS,

University of California, San Diego

SCOTT W. TINKER,

University of Texas, Austin

Senior Staff

JAMES ZUCCHETTO, Director

DUNCAN BROWN, Senior Program Officer

DANA CAINES, Financial Associate

ALAN CRANE, Senior Program Officer

K. JOHN HOLMES, Senior Program Officer

LANITA JONES, Administrative Coordinator

JASON ORTEGO, Senior Program Assistant

MADELINE WOODRUFF, Senior Program Officer

JONATHAN YANGER, Senior Program Assistant

Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
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BOARD ON SCIENCE, TECHNOLOGY, AND ECONOMIC POLICY

Members

EDWARD E. PENHOET (Chair),

Alta Partners, San Francisco, CA

LEWIS W. COLEMAN,

DreamWorks Animation, Glendale, CA

MARY L. GOOD,

University of Arkansas. Little Rock

RALPH E. GOMORY, president emeritus,

Alfred P. Sloan Foundation; New York University, New York, NY

AMORY ‘AMO’ HOUGHTON, JR. (former member of U.S. Congress),

Cohasset, MA

DAVID T. MORGENTHALER,

Morgenthaler Ventures, Cleveland, OH

JOSEPH P. NEWHOUSE,

Harvard University, Boston, MA

ARATI PRABHAKAR,

U.S. Venture Partners, Menlo Park, CA

WILLIAM J. RADUCHEL, independent director and investor,

Great Falls, VA

JACK W. SCHULER, Crabtree Partners,

Chicago, IL

ALAN WILLIAM WOLFF,

Dewey & LeBoeuf LLP, Washington, DC

Senior Staff

STEVE MERRILL, Director

DANIEL MULLINS, Senior Program Associate

Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
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OTHER REPORTS OF THE BOARD ON ENVIRONMENTAL STUDIES AND TOXICOLOGY

Review of the Environmental Protection Agency’s Draft IRIS Assessment of Tetrachloroethylene (2010)

Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use (2009)

Contaminated Water Supplies at Camp Lejeune—Assessing Potential Health Effects (2009)

Review of the Federal Strategy for Nanotechnology-Related Environmental, Health, and Safety Research (2009)

Science and Decisions: Advancing Risk Assessment (2009)

Phthalates and Cumulative Risk Assessment: The Tasks Ahead (2008)

Estimating Mortality Risk Reduction and Economic Benefits from Controlling Ozone Air Pollution (2008)

Respiratory Diseases Research at NIOSH (2008)

Evaluating Research Efficiency in the U.S. Environmental Protection Agency (2008)

Hydrology, Ecology, and Fishes of the Klamath River Basin (2008)

Applications of Toxicogenomic Technologies to Predictive Toxicology and Risk Assessment (2007)

Models in Environmental Regulatory Decision Making (2007)

Toxicity Testing in the Twenty-first Century: A Vision and a Strategy (2007)

Sediment Dredging at Superfund Megasites: Assessing the Effectiveness (2007)

Environmental Impacts of Wind-Energy Projects (2007)

Scientific Review of the Proposed Risk Assessment Bulletin from the Office of Management and Budget (2007)

Assessing the Human Health Risks of Trichloroethylene: Key Scientific Issues (2006)

New Source Review for Stationary Sources of Air Pollution (2006)

Human Biomonitoring for Environmental Chemicals (2006)

Health Risks from Dioxin and Related Compounds: Evaluation of the EPA Reassessment (2006)

Fluoride in Drinking Water: A Scientific Review of EPA’s Standards (2006)

State and Federal Standards for Mobile-Source Emissions (2006)

Superfund and Mining Megasites—Lessons from the Coeur d’Alene River Basin (2005)

Health Implications of Perchlorate Ingestion (2005)

Air Quality Management in the United States (2004)

Endangered and Threatened Species of the Platte River (2004)

Atlantic Salmon in Maine (2004)

Endangered and Threatened Fishes in the Klamath River Basin (2004)

Cumulative Environmental Effects of Alaska North Slope Oil and Gas Development (2003)

Estimating the Public Health Benefits of Proposed Air Pollution Regulations (2002)

Biosolids Applied to Land: Advancing Standards and Practices (2002)

The Airliner Cabin Environment and Health of Passengers and Crew (2002)

Arsenic in Drinking Water: 2001 Update (2001)

Evaluating Vehicle Emissions Inspection and Maintenance Programs (2001)

Compensating for Wetland Losses Under the Clean Water Act (2001)

A Risk-Management Strategy for PCB-Contaminated Sediments (2001)

Acute Exposure Guideline Levels for Selected Airborne Chemicals (seven volumes, 2000-2009)

Toxicological Effects of Methylmercury (2000)

Strengthening Science at the U.S. Environmental Protection Agency (2000)

Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
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Scientific Frontiers in Developmental Toxicology and Risk Assessment (2000)

Ecological Indicators for the Nation (2000)

Waste Incineration and Public Health (2000)

Hormonally Active Agents in the Environment (1999)

Research Priorities for Airborne Particulate Matter (four volumes, 1998-2004)

The National Research Council’s Committee on Toxicology: The First 50 Years (1997)

Carcinogens and Anticarcinogens in the Human Diet (1996)

Upstream: Salmon and Society in the Pacific Northwest (1996)

Science and the Endangered Species Act (1995)

Wetlands: Characteristics and Boundaries (1995)

Biologic Markers (five volumes, 1989-1995)

Science and Judgment in Risk Assessment (1994)

Pesticides in the Diets of Infants and Children (1993)

Dolphins and the Tuna Industry (1992)

Science and the National Parks (1992)

Human Exposure Assessment for Airborne Pollutants (1991)

Rethinking the Ozone Problem in Urban and Regional Air Pollution (1991)

Decline of the Sea Turtles (1990)


Copies of these reports may be ordered from the National Academies Press

(800) 624-6242 or (202) 334-3313

www.nap.edu

Page xiii Cite
Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
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OTHER REPORTS OF THE BOARD ON ENERGY AND ENVIRONMENTAL SYSTEMS

Letter Report on Review of Site and Full-Fuel-Cycle Measurement Approaches to DOE/EERE Building Appliance Energy-Efficiency Standards (2009)

Assessing Economic Impacts of Greenhouse Gas Mitigation: Summary of a Workshop (2009)

Review of the 21st Century Truck Partnership (2008)

Review of the Research Program of the FreedomCAR and Fuel Partnership, Second Report (2008)

Transitions to Alternative Transportation Technologies—A Focus on Hydrogen (2008)

Letter Report: Assessment of Technologies for Improving Light-Duty Vehicle Fuel Economy (2008)

Review of DOE’s Nuclear Energy Research and Development Program (2007)

Alternatives to the Indian Point Energy Center for Meeting New York Electric Power Needs (2006)

Prospective Evaluation of Applied Energy Research and Development at DOE (Phase Two) (2006).

Trends in Oil Supply and Demand, Potential for Peaking of Conventional Oil Production, and Possible Mitigation Options: A Summary Report of the Workshop (2006)

Review of the Research Program of the FreedomCAR and Fuel Partnership, First Report (2005).

Prospective Evaluation of Applied Energy Research and Development at DOE (Phase One): A First Look Forward (2005).

Letter Report: Methodology for Estimating Prospective Benefits of Energy Efficiency and Fossil Energy R&D (2004)

The Hydrogen Economy: Opportunities, Costs, Barriers and R&D Needs (2004)

Final Letter Report by the National Research Council Committee on Novel Approaches to Management of Greenhouse Gases from Energy Systems (2004)

Workshop Report: Novel Approaches to Carbon Management: Separation, Capture, Sequestration, and Conversion to Useful Products (2003)

Letter Report: Strategies and Alternatives for Future Hydrogen Production and Use (2003)

Letter Report: Critique of the Sargent and Lundy Assessment of Cost and Performance Forecasts for Concentrating Solar Power Technology (2002)

Making the Nation Safer, The Role of Science and Technology in Countering Terrorism: Panel on Energy Facilities and Cities (2002)

Effectiveness and Impact of Corporate Average Fuel Economy (CAFE) Standards (2002)

Review of the DOE’s Vision 21 Research and Development Program—Phase I (2002)

The Disposition Dilemma: Controlling the Release of Solid Materials from Nuclear Regulatory Commission-Licensed Facilities (2002)

Energy Research at DOE: Was It Worth It?: Energy Efficiency and Fossil Energy Research 1978 to 2000 (2001)

Review of the Research Program of the Partnership for a New Generation of Vehicles, Seventh Report (2001)

Review of the Research Program of the Partnership for a New Generation of Vehicles, Sixth Report (2000)

Review of the U.S. Department of Energy’s Office of Heavy Vehicle Technologies Program (2000)

Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
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Vision 21: Fossil Fuel Options for the Future (2000)

Renewable Power Pathways: A Review of the U.S. Department of Energy’s Renewable Energy Programs (2000)

Letter Report on Recent Initiatives by the Office of Energy Efficiency & Renewable Energy and the Office of Power Technologies (2000)

Review of DOE’s Office of Fossil Energy’s Research Plan for Fine Particulates (1999)

Review of the Research Strategy for Biomass-Derived Transportation Fuels (1999)

Review of the Research Program of the Partnership for a New Generation of Vehicles, Fifth Report (1999)

Review of the Research Program of the Partnership for a New Generation of Vehicles, Fourth Report (1998)

Review of the R&D Plan for the U.S. Department of Energy’s Office of Advanced Automotive Technologies (1998)

Effectiveness of the United States Advanced Battery Consortium as a Government-Industry Partnership (1998)

Review of the Research Program of the Partnership for a New Generation of Vehicles, Third Report (1997)

Application of Digital Instrumentation and Control Technology to Nuclear Power Plant Operations and Safety (Phase 1, 1995; Phase 2, 1997)

Review of the Research Program of the Partnership for a New Generation of Vehicles, Second Report (1996)

Decontamination & Decommissioning of Uranium Enrichment Facilities (1996)

Separations Technology and Transmutation Systems (1995)

Coal: Energy for the Future (1995)

Review of the Research Program of the Partnership for a New Generation of Vehicles, First Report (1994)

Review of the Strategic Plan of the U.S. Department of Energy’s Office of Conservation and Renewable Energy (1993)

Nuclear Power: Technical and Institutional Options for the Future (1992)

Automotive Fuel Economy: How Far Should We Go? (1992)

The National Energy Modeling System (1992)

Potential Applications of Concentrated Solar Photons (1991)

Assessment of Research Needs for Wind Turbine Rotor Materials Technology (1991)

Alternative Applications of Atomic Vapor Laser Isotope Separation Technology (1991)

Fuels to Drive Our Future (1990)

Confronting Climate Change: Strategies for Energy Research and Development (1990)

Nuclear Engineering Education: Status and Prospects (1990)

University Research Reactors in the United States—Their Role and Value (1988)


Copies of these reports may be ordered from the National Academies Press

(800) 624-6242 or (202) 334-3313

www.nap.edu

Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
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OTHER REPORTS OF THE BOARD ON SCIENCE, TECHNOLOGY, AND ECONOMIC POLICY

21st Century Innovation Systems for Japan and the United States: Lessons from a Decade of Change: Report of a Symposium (2009)

Innovative Flanders: Innovation Policies for the 21st Century: Report of a Symposium (2008)

Innovation in Global Industries: U.S. Firms Competing in a New World (Collected Studies) (2008)

India’s Changing Innovation System: Achievements, Challenges, and Opportunities for Cooperation: Report of a Symposium (2007)

Innovation Policies for the 21st Century: Report of a Symposium Committee on Comparative Innovation Policy: Best Practice for the 21st Century (2007)

Innovation Inducement Prizes at the National Science Foundation (2007)

Enhancing Productivity Growth in the Information Age: Measuring and Sustaining the New Economy (2007)

The Telecommunications Challenge: Changing Technologies and Evolving Policies—Report of a Symposium (2006)

Aeronautics Innovation: NASA’s Challenges and Opportunities (2006)

Measuring and Sustaining the New Economy, Software, Growth, and the Future of the U.S Economy: Report of a Symposium (2006)

Reaping the Benefits of Genomic and Proteomic Research: Intellectual Property Rights, Innovation, and Public Health (2006)

Deconstructing the Computer: Report of a Symposium (2005)

Partnering Against Terrorism: Summary of a Workshop (2005)

Research and Development Data Needs: Proceedings of a Workshop (2005)

Productivity and Cyclicality in Semiconductors: Trends, Implications, and Questions: Report of a Symposium (2005)

A Patent System for the 21st Century (2004)

Patents in the Knowledge-Based Economy (2003)

Securing the Future: Regional and National Programs to Support the Semiconductor Industry (2003)

Government-Industry Partnerships for the Development of New Technologies (2002)

Partnerships for Solid-State Lighting: Report of a Workshop (2002)

Using Human Resource Data to Track Innovation: Summary of a Workshop (2002)

Medical Innovation in the Changing Healthcare Marketplace: Conference Summary (2002)

Measuring and Sustaining the New Economy: Report of a Workshop (2002)

Trends in Federal Support of Research and Graduate Education (2001)

The Advanced Technology Program: Assessing Outcomes (2001)

A Review of the New Initiatives at the NASA Ames Research Center: Summary of a Workshop (2001)

Capitalizing on New Needs and New Opportunities: Government-Industry Partnerships in Biotechnology and Information Technologies (2001)

Building a Workforce for the Information Economy (2001)


Copies of these reports may be ordered from the National Academies Press

(800) 624-6242 or (202) 334-3313

www.nap.edu

Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
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Preface

The U.S. Congress directed the U.S. Department of the Treasury to arrange for a review by the National Academy of Sciences to define and evaluate the health, environmental, security, and infrastructural external costs and benefits associated with the production and consumption of energy—costs and benefits that are not or may not be fully incorporated into the market price of energy, into the federal tax or fee, or into other applicable revenue measures related to production and consumption of energy.

In response, the National Research Council established the Committee on Health, Environmental, and Other External Costs and Benefits of Energy Production and Consumption, which prepared this report. Biographic information on the committee members is presented in Appendix A.

In the course of preparing this report, the committee met six times. At two of the meetings, oral presentations were made by the following individuals at the invitation of the committee: Christopher Miller (staff for U.S. Senator Harry Reid); Mark Heil and John Worth (U.S. Department of the Treasury); Raymond Braitsch, Thomas Grahame, and Robert Marlay (U.S. Department of Energy); Robert Brenner and James Democker (U.S. Environmental Protection Agency); Arthur Rypinski (U.S. Department of Transportation); Nicholas Muller (Middlebury College); and Richard Tol (Economic and Social Research Institute, Dublin, Ireland). Interested members of the public at large were also given an opportunity to speak on these occasions. Subsequently, the committee held two teleconferences and one subgroup meeting to complete its deliberations.

In addition to the information from those presentations, the committee

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made use of peer-reviewed scientific literature, government agency reports, and databases.

This report has been reviewed in draft form by individuals chosen for their diverse perspectives and technical expertise in accordance with procedures approved by the National Research Council Report Review Committee. The purpose of this independent review is to provide candid and critical comments that will assist the institution in making its published report as sound as possible and to ensure that the report meets institutional standards for objectivity, evidence, and responsiveness to the study charge. The review comments and draft manuscript remain confidential to protect the integrity of the deliberative process. We wish to thank the following for their review of this report: David T. Allen, University of Texas, Austin; William F. Banholzer, the Dow Chemical Company; Eric J. Barron, National Center for Atmospheric Research; Donald Boesch, University of Maryland; Dallas Burtraw, Resources for the Future; Douglas M. Chapin, MPR Associates, Inc.; A. Myrick Freeman, III, professor emeritus, Bowdoin College; Charles H. Goodman, Southern Company Services, Inc. (retired); Dale W Jorgenson, Harvard University; Nathaniel Keohane, Environmental Defense Fund; Jonathan I. Levy, Harvard School of Public Health; Erik Lichtenberg, University of Maryland; Robert O. Mendelsohn, Yale University; Armistead Russell, Georgia Institute of Technology; Kumares C. Sinha, Purdue University; Kerry Smith, Arizona State University; Kirk R. Smith, University of California, Berkeley; Susan Tierney, Analysis Group; and Michael Walsh, Independent Consultant.

Although the reviewers listed above have provided many constructive comments and suggestions, they were not asked to endorse the conclusions or recommendations, nor did they see the final draft of the report before its release. The review of this report was overseen by Lawrence T. Papay, Science Applications International Corporation (retired) and Charles E. Phelps, University of Rochester. Appointed by the National Research Council, they were responsible for making certain that an independent examination of this report was carried out in accordance with institutional procedures and that all review comments were carefully considered. Responsibility for the final content of this report rests entirely with the author committee and the institution.

We wish to thank Eric Barron (National Center for Atmospheric Research) and Robert Stavins (Harvard University) for their service as members of the committee during the early stages of this study; they resigned from the committee for personal reasons.

Ronnie Brodsky (University of Maryland) and Paulina Jaramillo and Constantine Samaras (Carnegie Mellon University) helped with information gathering and literature reviews. Joseph Maher (Resources for the Future) assisted in data analysis and in developing report illustrations. The commit-

Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
×

tee’s work was assisted by staff of the National Research Council’s Board on Environmental Studies and Toxicology (BEST); the Board on Energy and Environmental Systems (BEES); and the Board on Science, Technology, and Economic Policy (STEP). We wish to thank Raymond Wassel, project director, and James Reisa (director of BEST) Steve Merrill (director of STEP) and James Zucchetto (director of BEES). Scientific and technical information was provided by David Policansky, Keegan Sawyer, Patrick Baur, Alan Crane, Leah Nichols, Duncan Brown, and Mirsada Karalic-Loncarevic. Logistical support was provided by John Brown and Daniel Mullins. Radiah Rose managed the production of the report, Ruth Crossgrove was the editor, and Steve Marcus served as a contributing editor.


Jared Cohon, Chair

Committee on Health, Environmental, and Other External Costs and Benefits of Energy Production and Consumption

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3

 

ENERGY FOR TRANSPORTATION

 

154

   

 Background,

 

154

   

 Approach to Analyzing Effects and Externalities of Transportation Energy Use,

 

157

   

 Production and Use of Petroleum-Based Fuels,

 

165

   

 Production and Use of Biofuels,

 

181

   

 Electric Vehicles,

 

197

   

 Natural Gas,

 

204

   

 Hydrogen Fuel-Cell Vehicles,

 

207

   

 Summary and Conclusions,

 

209

4

 

ENERGY FOR HEAT

 

222

   

 Background,

 

222

   

 Heat in Residential and Commercial Buildings,

 

226

   

 Heat in the Industrial Sector,

 

228

   

 Estimates of Externalities Associated with Energy Use for Heat,

 

232

   

 Emissions of Greenhouse Gases,

 

240

   

 Potential Damages Reductions in 2030,

 

241

   

 Summary,

 

246

5

 

CLIMATE CHANGE

 

248

   

 Overview of Quantifying and Valuing Climate-Change Impacts,

 

248

   

 Impacts on Physical and Biological Systems,

 

261

   

 Impacts on Human Systems,

 

266

   

 Economic Damage from Irreversible and Abrupt Climate Change,

 

289

   

 Aggregate Impacts of Climate Change,

 

294

   

 Marginal Impacts of Greenhouse Gas Emissions,

 

300

   

 Research Recommendations,

 

308

6

 

INFRASTRUCTURE AND SECURITY

 

309

   

 Introduction,

 

309

   

 Disruption Externalities in the Electricity-Transmission Grid,

 

309

   

 Facility Vulnerability to Accidents and Attacks,

 

316

   

 External Costs of Oil Consumption,

 

325

   

 Security of Energy Supply,

 

330

   

 National Security Externalities,

 

331

   

 Conclusion,

 

336

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Boxes, Figures, and Tables

BOXES

1-1

 

Statement of Task,

 

24

1-2

 

Definitions of Key Terms,

 

30

2-1

 

Airborne Particulate Matter,

 

69

2-2

 

Entrainment and Impingement of Aquatic Organisms by Thermal Power Plants,

 

131

4-1

 

Definition of Residential, Commercial, and Industrial Sectors,

 

223

4-2

 

Energy for Heat in Steel Manufacture,

 

229

4-3

 

Zero-Energy Concept Home,

 

243

5-1

 

Estimating the Impacts of Climate Change on Agriculture,

 

280

5-2

 

Discounting and Equity Weighting,

 

302

FIGURES

S-1

 

Distribution of aggregate damages among the 406 coal-fired power plants analyzed in this study,

 

7

S-2

 

Distribution of aggregate damages among the 498 natural-gas-fired power plants analyzed in this study,

 

9

S-3

 

Health effects and other nonclimate damages are presented by life-cycle component for different combinations of fuels and light-duty automobiles in 2005 and 2030,

 

14

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S-4

 

Greenhouse gas emissions (grams CO2-eq)/VMT by life-cycle component for different combinations of fuels and light-duty automobiles in 2005 and 2030,

 

16

1-1

 

Marginal damage associated with SO2 emissions in a year (x-axis) and the marginal cost of emitting SO2 in a year (y-axis) for a hypothetical power plant (Firm 1) emitting SO2,

 

34

1-2

 

Sources and forms of energy that provide the ability to do useful work,

 

37

1-3

 

Energy flows in the U.S. economy, 2007,

 

38

1-4

 

U.S. energy consumption by energy source in 2007,

 

39

1-5

 

U.S. consumption of energy by sector and fuel type in 2007,

 

40

1-6

 

U.S. delivered energy consumption by end-use sector in 2007,

 

41

1-7

 

Life-cycle analysis for energy use,

 

44

2-1

 

Major coal-producing regions in the United States (million short tons and percent change from 2006),

 

73

2-2

 

Methods of U.S. coal transport,

 

74

2-3

 

Injuries in U.S. coal-mining operations from 2000 to 2008,

 

76

2-4

 

U.S. coal production 1949-2007, by mining method,

 

79

2-5

 

Distribution of aggregate damages in 2005 by decile: Coal plants,

 

89

2-6

 

Air-pollution damages from coal generation for 406 plants, 2005,

 

90

2-7

 

Distribution of air-pollution damages per kWh for 406 coal plants, 2005,

 

93

2-8

 

Regional distribution of air-pollution damages from coal generation per kWh in 2005,

 

94

2-9

 

Coal combustion product beneficial use versus production,

 

104

2-10

 

U.S. natural gas well average productivity,

 

110

2-11

 

Natural gas production, consumption, and imports in the United States,

 

110

2-12

 

U.S. fatalities in oil and gas extraction from 1992 to 2007,

 

115

2-13

 

Injuries and illnesses in U.S. oil and natural gas extraction operations,

 

115

2-14

 

Distribution of aggregate damages in 2005 by decile: Natural-gas-fired plants,

 

119

2-15

 

Criteria-air-pollutant damages from gas generation for 498 plants, 2005 (USD 2007),

 

120

2-16

 

Distribution of criteria-air-pollutant damages per kWh of emissions for 498 natural-gas-fired plants, 2005,

 

121

2-17

 

Regional distribution of criteria-air-pollutant damages from gas generation per kWh,

 

122

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2-18

 

Locations of operating nuclear power reactors in the United States,

 

126

2-19

 

Locations of nuclear power reactor sites undergoing decommissioning in the United States,

 

126

3-1

 

U.S. transportation energy consumption by mode and vehicle in 2003,

 

155

3-2

 

Overview of petroleum consumption, production, and imports from 1949 to 2007,

 

166

3-3

 

Location of U.S. oil refineries,

 

167

3-4

 

Products made from one barrel of crude oil (gallons),

 

167

3-5

 

U.S. refinery and blender net production of refined petroleum products in 2007,

 

168

3-6

 

Conceptual stages of fuel life cycle,

 

170

3-7

 

Health effects and other nonclimate damages are presented by life-cycle component for different combinations of fuels and light-duty automobiles in 2005 and 2030,

 

212

3-8

 

Greenhouse gas emissions (grams CO2-eq)/VMT by life-cycle component for different combinations of fuels and light-duty automobiles in 2005 and 2030,

 

216

3-9

 

Aggregate operation, feedstock, and fuel damages of heavy-duty vehicles from air-pollutant emissions (excluding GHGs),

 

217

3-10

 

Aggregate operation, feedstock, and fuel damages of heavy-duty vehicles from GHG emissions,

 

218

4-1

 

Total U.S. energy use by sector, 2008,

 

224

4-2

 

U.S. energy consumption by source and sector, 2008 (quadrillion Btu),

 

225

4-3

 

Energy use, energy intensity, output, and structural effects in the industrial sector, 1985-2004,

 

230

4-4

 

Manufacturing sector consumption of natural gas as a fuel by industry, 2002,

 

232

4-5

 

Greenhouse gas emissions in the United States by sector,

 

239

5-1

 

Global anthropogenic GHG emissions,

 

251

5-2

 

Atmosphere-Ocean General Circulation Model projections of surface warming,

 

252

5-3

 

Global CO2 emissions for 1940 to 2000 and emissions ranges for categories of stabilization scenarios from 2000 to 2100; and the corresponding relationship between the stabilization target and the probable equilibrium global average temperature increase above preindustrial levels,

 

255

5-4

 

Multimodel projected patterns of precipitation changes,

 

262

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5-5

 

Examples of regional impacts of climate change,

 

270

5-6

 

Mid-Atlantic wetland marginalization and loss as a consequence of sea-level rise,

 

273

5-7

 

Impact of increased temperature and precipitation on agricultural productivity,

 

282

5-8

 

Irreversible precipitation changes by region,

 

291

5-9

 

Dependence of GHG damage on the amount of temperature change,

 

298

5-10

 

Dependence of GHG damage, as a percent of global gross domestic product, on the amount of temperature change,

 

299

6-1

 

Illustration of monopsony,

 

327

7-1

 

Distribution of aggregate damages from coal-fired power plants by decile,

 

340

7-2

 

Air-pollution damages from coal-fired electricity generation for 406 plants in 2005,

 

341

7-3

 

Distribution of air-pollution damages per kilowatt-hour for 406 coal plants in 2005,

 

342

7-4

 

Distribution of aggregate damages from natural-gas-fired power plants by decile,

 

343

7-5

 

Air-pollution damages from natural-gas-fired electricity generation for 498 plants, 2005,

 

345

7-6

 

Health effects and other nonclimate damages are presented by life-cycle component for different combinations of fuels and light-duty automobiles in 2005 and 2030,

 

352

7-7

 

Greenhouse gas emissions (grams CO2-eq)/VMT by life-cycle component for different combinations of fuels and light-duty automobiles in 2005 and 2030,

 

355

B-1

 

Pollution abatement and cost per ton of abatement,

 

421

E-1

 

The Boone River Watershed,

 

472

TABLES

1-1

 

Committee Study Approach for Energy Sources and Consumption Sectors,

 

42

1-2

 

Illustrative Impacts of Producing Electricity from Coal,

 

46

1-3

 

Illustrative Impact Categories Pathways,

 

50

2-1

 

Net Electricity Generation by Energy,

 

65

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Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
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2-2

 

Energy for Electricity: Impacts and Externalities Discussed, Quantified, or Monetized,

 

70

2-3

 

Coal Classification by Type,

 

72

2-4

 

Five Leading Coal-Producing States, 2007, by Mine Type and Production,

 

73

2-5

 

Estimated Recoverable Reserves for the 10 States with the Largest Reserves by Mining Method for 2005,

 

74

2-6

 

Estimated Injuries, Illnesses, and Fatalities during Rail Transport of Coal for Electricity Power, 2007,

 

79

2-7

 

Distribution of Criteria-Air-Pollutant Damages Associated with Emissions from 406 Coal-Fired Power Plants in 2005,

 

89

2-8

 

Distribution of Criteria-Air-Pollutant Damages per Ton of Emissions from Coal-Fired Power Plants,

 

90

2-9

 

Distribution of Criteria-Air-Pollutant Damages per Kilowatt-Hour Associated with Emissions from 406 Coal-Fired Power Plants in 2005,

 

92

2-10

 

NOx and SO2 Emissions (2002) from Coal-Fired Electricity Generation by Age of Power Plant,

 

95

2-11

 

Distribution of Pounds of Criteria-Pollutant-Forming Emissions per Megawatt-Hour by Coal-Fired Power Plants, 2005,

 

97

2-12

 

2007 Coal Combustion Product (CCP) Production and Use Survey Results,

 

102

2-13

 

IPCC Range of Aggregate Costs for CO2 Capture, Transport, and Geological Storage,

 

106

2-14

 

Distribution of Criteria-Pollutant Damages Associated with Emissions from 498 Gas-Fired Power Plants in 2005,

 

118

2-15

 

Distribution of Criteria-Pollutant Damages per kWh Associated with Emissions from 498 Gas-Fired Power Plants in 2005,

 

118

2-16

 

Distribution of Pounds of Criteria-Pollutant-Forming Emissions per Megawatt-Hour by Gas-Fired Power Plants, 2005,

 

121

2-17

 

Distribution of Damages per Ton of Criteria-Pollutant-Forming Emissions by Gas-Fired Power Plants,

 

122

2-18

 

U.S. Nuclear Power Reactors Undergoing Decommissioning,

 

127

3-1

 

Vehicle-Fuel Technologies in the Committee’s Analysis,

 

162

3-2

 

Number of U.S. Aircraft, Vehicles, Vessels, and Other Conveyances,

 

169

3-3

 

Health and Other Non-GHG Damages from a Series of Gasoline and Diesel Fuels Used in Light-Duty Automobiles,

 

178

3-4

 

Health and Other Damages Not Related to Climate Change from a Series of Gasoline and Diesel Fuels Used in Heavy-Duty Vehicles,

 

179

Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
×

3-5

 

Carbon Dioxide Equivalent (CO2-eq) Emissions of GHGs from a Series of Gasoline and Diesel Fuels,

 

180

3-6

 

Feedstocks Identified in AEF Report and Partial List of Their Externalities,

 

183

3-7

 

Water Quality and Externalities Estimated for Ethanol Scenarios,

 

192

3-8

 

Estimated Ethanol Production from Feedstocks in the Boone River Watershed,

 

194

3-9

 

Monetized Land-Use Damages of the Boone River Case Study,

 

195

3-10

 

Comparison of Health and Other Non-GHG Damages from Conventional Gasoline to Three Ethanol Feedstocks,

 

196

3-11

 

Plausible Light-Duty-Vehicle Market Shares of Advanced Vehicles by 2020 and 2035,

 

199

3-12

 

Energy Use During Vehicle Manufacturing and Disposal of Light-Duty-Vehicles,

 

200

3-13

 

Comparison of Health and Other Non-GHG Damage Estimates for Hybrid- and Electric-Vehicle Types with Conventional Gasoline, 2005 and 2030,

 

203

3-14

 

Health and Other Non-GHG Damages from CNG Light-Duty Autos and Trucks (Values Reported in Cents/VMT),

 

206

3-15

 

Carbon Dioxide Equivalent (CO2-eq) Emissions of GHGs from CNG Autos and Light-Duty Trucks Compared with Reformulated Gasoline Vehicles (Grams/VMT),

 

207

3-16

 

Health and Other Non-GHG Damages from Hydrogen Fuel-Cell Autos Compared with Reformulated Gasoline Autos,

 

208

3-17

 

Carbon Dioxide Equivalent (CO2-eq) Emissions of GHGs from Hydrogen Fuel-Cell Autos Compared with Reformulated Gasoline Autos,

 

209

3-18

 

Relative Categories of Damages 2005 and 2030 for Major Categories of Light-Duty Fuels and Technologies,

 

210

3-19

 

Relative Categories of GHG Emissions in 2005 and 2030 for Major Categories of Light-Duty Fuels and Technologies,

 

215

4-1

 

U.S. Nonelectric Energy Consumption by Source and End-Use Sector: Years 2007 and 2030 (EIA Estimates) (Quadrillion Btu),

 

229

4-2

 

Residential Sector Natural Gas Use for Heat: National Damage Estimates from Air Pollutants (Excluding Greenhouse Gases) (Cents/MCF) (2007 USD). (Damage Estimated from 2002 NEI Data for 3,100 Counties),

 

234

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4-3

 

Residential Sector Natural Gas Use for Heat: Regional Damage Estimates (Excluding Greenhouse Gases) (Cents/MCF). (Damage Estimated from 2002 NEI Data for 3,100 Counties),

 

236

4-4

 

Commercial Sector Natural Gas Use for Heat: National Damage Estimates from Air Pollutants (Excluding Greenhouse Gases) (Cents/MCF),

 

237

5-1

 

Characteristics of Post-Third Assessment Report (TAR) Stabilization Scenarios and Resulting Long-Term Equilibrium Global Average Temperature and the Sea-Level Rise Component from Thermal Expansion Only,

 

254

5-2

 

Climate-Related Observed Trends of Various Components of the Global Freshwater Systems,

 

265

5-3

 

Examples of Possible Impacts of Climate Change Due to Changes in Extreme Weather and Climate Events, Based on Projections to the Mid- to Late 21st Century,

 

268

5-4

 

Water Availability Effects from Climate Change for Selected Studies (Percent of Contemporaneous GDP Around 2100),

 

271

5-5

 

Values of the Benchmarking Parameter,

 

274

5-6

 

Benchmark Sea-Level Rise Estimates in FUND,

 

276

5-7

 

Estimates of Total Damage Due to Climate Change from Benchmark Warming (Percent Change in Annual GDP),

 

295

5-8

 

Marginal Global Damages from GHG Emissions: Estimates from Widely Used Models,

 

297

5-9

 

Indicative Marginal Global Damages from Current GHG Emissions ($/Ton CO2-eq),

 

302

5-10

 

Illustration of Ranges of Climate-Related Damages for Selected Categories of Energy Use in the United States, 2005,

 

307

6-1

 

Net Stock of Energy-Related Fixed Assets in 2007 ($Billions),

 

310

6-2

 

Estimates of the Average Cost of Outages,

 

312

6-3

 

LNG Infrastructure and Safety Record,

 

318

6-4

 

Average Number and Volume of Oil Spills on U.S. Soil, 1990-1998,

 

320

6-5

 

Annual Averages for Significant Pipeline Incidents, 2002-2006,

 

322

6-6

 

Annual Averages for Pipelines per Ton Miles, 2002-2006,

 

323

6-7

 

U.S. Oil Dependence,

 

326

7-1

 

Relative Categories of Health and Other Nonclimate-Change Damages 2005 and 2030 for Major Categories of Light-Duty Vehicle Fuels and Technologies,

 

350

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7-2

 

Relative Categories of GHG Emissions 2005 and 2030 for Major Categories of Light-Duty Vehicle Fuels and Technologies,

 

354

7-3

 

Monetized Damages Per Unit of Energy-Related Activity,

 

361

C-1

 

Epidemiology Studies Used in APEEP,

 

427

C-2

 

Concentration-Response Studies Used in APEEP,

 

428

C-3

 

Value of Human Health Effects in APEEP,

 

428

C-4

 

Value of Nonmarket Impacts of Air Pollution,

 

428

D-1

 

GREET 2.7a Vehicle Manufacturing Results for Cars,

 

436

D-2

 

GREET 2.7a Vehicle Manufacturing Results for SUVs,

 

436

D-3

 

GREET Energy and Emission Factors for Light-Duty Autos in 2005,

 

438

D-4

 

GREET Energy and Emission Factors for Light-Duty Trucks 1 in 2005,

 

442

D-5

 

GREET Energy and Emission Factors for Light-Duty Trucks 2 in 2005,

 

446

D-6

 

GREET Energy and Emission Factors for Light-Duty Autos in 2020,

 

450

D-7

 

GREET Energy and Emission Factors for Light-Duty Trucks 1 in 2020,

 

454

D-8

 

GREET Energy and Emission Factors for Light-Duty Trucks 2 in 2020,

 

458

D-9

 

Mobile6.2 Energy and Emission Factors for Heavy-Duty Vehicles in 2005,

 

462

D-10

 

Mobile6.2 Energy and Emission Factors for Heavy-Duty Vehicles in 2030,

 

463

D-11

 

Comparison of Emission Factors (g/VMT) for a Light-Duty Gasoline Automobile in 2005,

 

463

D-12

 

Comparison of Emission Factors (g/VMT) for a Light-Duty Diesel Automobile in 2005,

 

463

D-13

 

Mobile6.2 Ammonia Emissions (g/VMT),

 

465

E-1

 

Boone River Watershed Baseline Cropping Pattern,

 

472

Suggested Citation:"Front Matter." National Research Council. 2010. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use. Washington, DC: The National Academies Press. doi: 10.17226/12794.
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Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use Get This Book
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Despite the many benefits of energy, most of which are reflected in energy market prices, the production, distribution, and use of energy causes negative effects. Many of these negative effects are not reflected in energy market prices. When market failures like this occur, there may be a case for government interventions in the form of regulations, taxes, fees, tradable permits, or other instruments that will motivate recognition of these external or hidden costs.

The Hidden Costs of Energy defines and evaluates key external costs and benefits that are associated with the production, distribution, and use of energy, but are not reflected in market prices. The damage estimates presented are substantial and reflect damages from air pollution associated with electricity generation, motor vehicle transportation, and heat generation. The book also considers other effects not quantified in dollar amounts, such as damages from climate change, effects of some air pollutants such as mercury, and risks to national security.

While not a comprehensive guide to policy, this analysis indicates that major initiatives to further reduce other emissions, improve energy efficiency, or shift to a cleaner electricity generating mix could substantially reduce the damages of external effects. A first step in minimizing the adverse consequences of new energy technologies is to better understand these external effects and damages. The Hidden Costs of Energy will therefore be a vital informational tool for government policy makers, scientists, and economists in even the earliest stages of research and development on energy technologies.

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