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Market Prices of Fossil Fuels Costs ($/metric ton) were determined for four externality sources, summarized below. These market prices take into account the externality or cost/benefit that is not transmitted through market prices for geothermal power. By using these market prices, the environmental, health, and security costs associated with generating power from fossil fuels instead of geothermal are factored into the methodology of this analysis. The Social Cost of Carbon: Trends, Outliers and Catastrophes (2008) This paper presents an update of an earlier meta-analysis of Tol’s 2005 paper of the social cost of carbon. Using more data and more advanced statistical analysis, this paper confirms the findings of Tol’s 2005 paper and estimates that the social costs of carbon are driven to a large extent by the choice of the discount rate, and equity weights. With the conservative assumptions above, the mean cost of carbon equals $23 per ton of carbon. Additionally, Tol writes there is a 1% probability that the social cost of carbon is greater than $78 per ton of carbon. Estimating the Social Cost of Non-CO2 GHG Emissions: Methane and Nitrous Oxide (2011) This paper uses a simplified integrated assessment model that combines the Model for the Assessment of Greenhouse-gas Induced Climate Change (MAGICC) and the Dynamic Integrated Climate Change Model (DICE) to estimate the social costs of the three most important greenhouse gases, —CO2, CH4, and N2O—for the years 2010 through 2050. The model is based on the assumptions and input parameters of the recent U.S. government interagency SCC working group. Hidden Costs of Energy: Unpriced Consequences of Energy Production and Use (2010) Chapter 2 of this reference, “Energy for Electricity,” provides detailed analyses of electricity generation from coal, natural gas, nuclear fission, wind, and solar. The first three sources were chosen because they together account for 88% of all electricity generated in the U.S. when this publication was written in 2009-2010. Measuring the Damages of Air Pollution in the United States (2007) “Measuring the Damages of Air Pollution in the United States” estimates the damages due to emissions of air pollution in the U.S. An integrated assessment model is used to calculate the marginal damage associated with emitting an additional ton of pollution from nearly 10,000 sources in the U.S. Gross Annual Damages (GAD) in 2002, resulting in a range from $71 billion to $277 billion (0.7% to 2.8% of GDP). The range of values depends largely on the value of health, source location, and the concentration-response function relating exposures to particulate matter to adult mortality rates. Urban emissions constitute 52% of total emissions by weight, yet they cause nearly three-quarters of the GAD. Results Using the methodology described above, GEA found the benefit of producing power using geothermal sources, as opposed to fossil fuels is $0.01 for natural gas, and $0.035 for coal per kWh. These three values can be interpreted in two ways. First, they can be viewed as benefits associated with using geothermal energy in place of fossil fuels. For example, society gains 3.5 cents in value for every kWh of geothermal energy generated opposed to that same energy coming from coal. Alternatively, these values can be viewed as a cost incurred from using fossil fuels. If the same amount of electricity was generated in the U.S. from coal instead of geothermal energy, the result would cost society 3.5 cents per kWh. 13PDF Image | Promoting Geothermal Energy
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