Marginal abatement cost curve for nitrogen oxides incorporating controls, renewable electricity, energy efficiency, and fuel switching

ABSTRACT

A marginal abatement cost curve (MACC) traces out the relationship between the quantity of pollution abated and the marginal cost of abating each additional unit. In the context of air quality management, MACCs are typically developed by sorting control technologies by their relative cost-effectiveness. Other potentially important abatement measures such as renewable electricity, energy efficiency, and fuel switching (RE/EE/FS) are often not incorporated into MACCs, as it is difficult to quantify their costs and abatement potential. In this paper, a U.S. energy system model is used to develop a MACC for nitrogen oxides (NO_x) that incorporates both traditional controls and these additional measures. The MACC is decomposed by sector, and the relative cost-effectiveness of RE/EE/FS and traditional controls are compared. RE/EE/FS are shown to have the potential to increase emission reductions beyond what is possible when applying traditional controls alone. Furthermore, a portion of RE/EE/FS appear to be cost-competitive with traditional controls.

Implications: Renewable electricity, energy efficiency, and fuel switching can be cost-competitive with traditional air pollutant controls for abating air pollutant emissions. The application of renewable electricity, energy efficiency, and fuel switching is also shown to have the potential to increase emission reductions beyond what is possible when applying traditional controls alone.

Acknowledgment

A number of additional people contributed to this work. Motivation to explore measures beyond traditional controls originated through discussions among the authors and Julia Gamas and Darryl Weatherhead of the EPA’s Office of Air Quality Planning and Standards. Alison Eyth and David Misenheimer provided the emission inventory and control data, respectively, used to develop the characterization of traditional controls in MARKAL. Development of the EPAUS9r MARKAL database has been a collaborative effort within the EPA’s Office of Research and Development. Those with contributions most germane to this study include Carol Lenox, Rebecca Dodder, Ozge Kaplan, and William Yelverton, although there have been a host of additional contributors, including former EPA employees, postdoctoral fellows, student interns, and contractors.

Disclaimer

Although this paper has been reviewed and cleared for publication by the EPA, the views expressed here are those of the authors and do not necessarily represent the official views or policies of the agency. Mention of software, models, and organizations does not constitute an endorsement.

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Additional information

Notes on contributors

Daniel H. Loughlin

Daniel H. Loughlin, Ph.D., is a senior physical scientist with the EPA Office of Research and Development.

Alexander J. Macpherson

Alexander J. Macpherson, Ph.D., is a senior economist with the EPA Office of Air Quality Planning and Standards.

Katherine R. Kaufman

Katherine R. Kaufman is a policy analyst with the EPA Office of Air Quality Planning and Standards.

Brian N. Keaveny

Brian N. Keaveny is an economist with the EPA Office of Air Quality Planning and Standards.