J.C. Randolph and Nives Dolšak. “Regional Versus Global? Will Strategies for Reduction of Sulfur Dioxide Emissions from Electric Utilities Increase Carbon Dioxide Emissions?” World Resource Review, (1997) Vol. 9, No. 4., pp. 337-358.

ABSTRACT:

Electric utilities, which are dependant on high-sulfur coal, are required by the Clean Air Act Amendments (CAAA) of 1990 to reduce their sulfur dioxide emissions. The strategies for reducing sulfur dioxide may result in increased carbon dioxide emissions. Reducing regional air pollution may, therefore, increase global pollution. Environmental, political, moral, and economic consequences of the two types of pollution differ significantly. Strategies for reducing sulfur dioxide emissions from Midwest electric utilities in the U.S.A. are analyzed in this paper. The same problem, however, may occur in many European countries, relying on high-sulfur coal.

The paper focuses on two general strategies for reducing sulfur dioxide emissions: (1) coal switching and/or blending the existing coal with a low-sulfur content coal and (2) flue-gas desulfurization devices (“scrubbers”). A combination of both strategies is also a viable option. Switching to low-sulfur coal may result in larger carbon dioxide emissions because this coal in general has lower heat content and is transported over longer distance from the mine to the electric plant. Scrubbers require significant amounts of energy for their operation thereby requiring additional electricity generation and carbon dioxide emissions.

Six utilities are included in this study: Hoosier Energy Cooperative, Indiana Michigan Power, Indianapolis Power and Light, Northern Indiana Public Service, PSI Energy, and Southern Indiana Gas and Electric company. The TELPLAN model is used to simulate various options for reducing sulfur dioxide emissions. The model is modified to enable the incorporation of the analysis of carbon dioxide emissions. The results suggest that scrubbers are the optimum strategy for reducing sulfur dioxide emissions from the large utilities, whereas coal-switching are optimum for the small utilities. The optimum sulfur dioxide emission strategy would increase carbon dioxide emissions in only one of the six examined utilities. However, utilities will not necessarily chose the strategy that results in the lowest sulfur dioxide emissions. Other factors, such as cost-effectiveness, reliability of supply, and effects on other local industries (for example, local coal mining) may play a role in decision process. Though carbon dioxide emissions are currently not regulated, strategies focusing only on sulfur dioxide reduction may be short-lived.