Differences in methodologies used for externality assessment

Panel: Panel 4: Environmental Perspective (externalities and life cycle approaches, local and global impacts and incentatives)

Author:
Lotte Schleisner, Risø National Laboratory, Denmark

Abstract

The production of energy gives rise to different kinds of damage to the environment depending on the specific type of technology used in producing a given energy supply. The common term that expresses the costs of these environmental damages is externalities. These are costs that are not included in the cost and price structure faced by the producer and the consumer.

During the last few years, external costs related to power production technologies have been calculated making use of different methodologies. The external costs may turn out to be very different for the same fuel cycle depending on the methodology that has been used to assess the externalities.

The paper will focus on some of the most important reasons for differences in the results. As an example, two studies using the same approach and with integrated computer models are compared. The models are in principle built up in the same way with air dispersion modules and dose-response functions for the calculation of impacts.

Although the models seem more or less similar, the resulting external costs turn out to be four times larger when one model is used compared to the other model for the same power plant.