Optimal Use of Smokestack Scrubber By-Product
Posted: 9 Dec 2001
Federal legislation mandates substantial reduction of air pollution emissions from electric utilities. Utilities in Appalachia that use locally mined high-sulfur coal must chose among abatement options such as fuel mixing and smokestack scrubbing technologies. Wet scrubbers are the most frequently adopted abatement technology in Ohio.
We investigate 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. Our findings suggest that significant incentives exist to find beneficial uses for by-product.
Keywords: environmental economics, recycling, externalities
JEL Classification: Q24, R19
Suggested Citation: Suggested Citation