Estimating the Externalities of Fuel Cycles

This is a brief description of studies that exemplify the methods and approaches that have been developed and used by Oak Ridge National Laboratory (ORNL) researchers in conducting integrated assessments. See the complete list of Integrated Assessment Briefs to find out more about ORNL's efforts in integrated assessment. Contact Mike Farrell (farrellmp@ornl.gov) for more information.

Estimating the Externalities of Fuel Cycles

The U.S. Fuel Cycle Study team at Oak Ridge National Laboratory developed a methodological framework to estimate environmental externalities associated with energy produced by coal. This methodology will be applied to nuclear, biomass, natural gas, oil, and hydro fuel cycles, as well.

How are the externalities associated with fuel cycles estimated?

Externalities are effects of electric power on the welfare of others. A fuel cycle consists of the stages in generating electric power such as mining, transportation, and waste disposal. This study was conducted for the U.S. Department of Energy and the Commission of the European Communities. It addressed the different fuel cycles of coal, biomass, nuclear technologies, hydropower, and natural gas.

Major products of the study are a methodological framework and a set of analytical tools that can be used at each step of the methodology. The study emphasizes that externalities generally depend on the design of the power plant, its location, and the extant regulations that may have some of the damages already reflected in the price of electric power. Numerical examples in the study suggest that some of the more important externalities for different fuel cycles are:

coal: health effects from particulate matter unless baseline concentrations are very low, morbidity from exposure to ozone in areas already high in ozone concentration, crop damage from ozone, road damage if trucks are used to transport fuel to the power plant, and injuries and fatalities from transportation accidents;
biomass: health effects from particulate matter and ozone, and road damage and accidents from transporting biomass feedstock to the power plant;
nuclear technologies: remediation costs from a severe accident (should one occur), expected effects to public health from releases of radioactive materials during transport, and occupational and public fatalities from exposure to radon from uranium mines;
hydropower: minor externalities, unless sensitive habitats or highly valued areas are disturbed or intruded upon; and
natural gas: health effects from ozone and particulate matter.

Lee, R., et al. 1995. External Costs and Benefits of Fuel Cycles, 7 Volumes. ORNL/RFF. McGraw-Hill/Utility Data Institute, Washington, D.C.

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Integrated Assessment Briefs. 1995. ORNL/M-4227. Oak Ridge National Laboratory, Oak Ridge, TN.