Economic and health benefits of the co-reduction of air pollutants and greenhouse gases

This study examines the monetary value of social costs-private costs and negative externalities-that could be avoided by energy conservation actions. A novel Air Resource Co-Benefits (ARCoB) model has been developed in this study to assess the comprehensive social benefits of greenhouse gas GHG mitigation policy. The rollback model is used to estimate changes in air pollutant concentrations attributed to the emission reductions. Change in ozone concentration is converted from non-methane hydrocarbons based on the maximum ozone increment reactivity. In addition to saved medical expenditure, years of potential life lost (YPLL) is estimated based on the exposure-response coefficients for mortality and is calculated with abridged life table. Two cases of energy efficiency improvement in different scales are analyzed to estimate the annual co-benefits of abatements of air pollutants and greenhouse gas in 2009: 1) the energy intensity reduction in the industrial sector and 2) energy saving at Taipei Taiwan City Hall. Results indicate the saved energy cost accounted for 66 % and 70 % in the first and second case, respectively, and was a major part of the total benefit from energy conservation. The saved air pollution fee was 7.8-8.5 times lower than the averted health cost of medical expenditure, which was US$10.34 million in the first case, in which there were also averted YPLL of 3,478 person-years or averted deaths of 311 persons per year.