Environmental impact of fossil fuel plants - Review of Related Literature

 

Review of Related Literature

            Fossil fuels are the remains of organic matter that, over hundreds of millions of years, have undergone substantial physical changes induced by pressure and chemical changes caused by the action of bacteria (Borowitz, 1999). The fossil fuels are coal, oil, and natural gas. They provide the United States with about 90 percent of the energy it uses (Borowitz, 1999). This energy was originally provided by the sun, which made it possible for the plants to grow.

McDonald (1979) examined the different kinds of environmental regulation of federal lessees in minerals production with a view to evaluating them as means of efficiently internalizing externalities. It will be sufficient to indicate the nature of such regulation if confined to outer continental shelf oil and gas regulations, coal regulations, and shale oil regulations. In general, environmental regulations for outer continental shelf oil and gas are designed to prevent the interchange of fluids between strata in the drilling, operation, or abandonment of wells, to prevent oil spills  (McDonald, 1979).

McDonald (1979) suggested that in the production of minerals other than oil and gas profit-motivated behavior by competitive producers tends to assure the optimum rate of extraction; but in the case of oil and gas such behavior leads to an excessive investment in wells, too rapid an extraction of minerals, and too great a loss of ultimate recovery. Some form of regulation of the rate of oil and gas production is in the interest of society, not only from the point of view of conservation but also from the point of view of maximizing the capture of pure economic rent on publicly owned lands.

Environmental protection requirements imposed on fossil-fuel electric power generators by the United States Environmental Protection Agency (EPA) are subject to ongoing review because this is the industry most responsible for conventional air pollutant emissions and is a significant source category of hazardous air pollutants (Reitze, 2002).

To comply with the SIP requirements, fossil-fuel electric power generating plants must meet the CAA requirements applicable to stationary sources, but due to the large portion of stationary source emissions attributable to the electric power industry, there are provisions in the CAA aimed primarily at this industry.     Moreover, according to Reitze (2002) because of the size of most electric power plants, the more stringent requirements imposed on major sources usually are applicable. In addition, CAA subchapter IV imposes on the electric power industry an emission cap and trading system for and coal-fired utility units are subject to emission limitations for N[O.sub.x].

Unfortunately, these CAA programs are not: part of an overall strategy that encompasses both environmental and energy policy considerations (Reitze, 2002). According to Reitze (2002) the proposed four-pollutant bill, which includes controls on carbon dioxide emissions, does not appear to have given adequate consideration to either costs or its effect on the use of coal to generate electricity. The new source review program still has not developed a workable definition of "repair," and the program to get old facilities to meet the emission standard of new sources is dependent on the vagaries of an enforcement program. Moreover, the Bush administration may terminate aggressive enforcement of the NSR program. Further, after more than thirty years of experience with the CAA, emissions standards are still based on the amount of fuel used rather than electricity generated, which gives a competitive advantage to dirty, inefficient coal-burning plants. Such an approach is in conflict with the recent efforts to control carbon dioxide emissions.

It is clear that decisions concerning the CAA will have major ramifications in determining how electricity will be generated in the coming years (Reitze, 2002). But, because of the lack of any overall energy or environmental policy, the decisions concerning how and where electricity is generated will be made by the utilities seeking to avoid risk and meet their obligations to shareholders (Reitze, 2002). A significant factor in the private sector's decision-making process will be CAA requirements. At this time, the federal government has largely failed to develop an energy policy consistent with the need to protect air quality, and it has failed to develop CAA requirements that encourage efficient use of energy (Reitze, 2002).

It is now widely acknowledged that the depletion of geological stocks of fossil hydrocarbons will eventually force the global economy to shift to an alternative energy technology (England, 1994).This would be true even if the Earth were a solid piece of coal. Several transitional strategies have been proposed to facilitate the historic shift from fossil fuels to their eventual replacement(s). The World Resources Institute 11992, 22!, for example, emphasizes the immediate potential for increased energy efficiency. According to England (1994) these transitional strategies offers a permanent solution to emerging energy and environmental dilemmas. Investments in more energy-efficient artifacts would certainly help to lower the ratio of energy use to gross output for the economy as a whole. However, if the aggregate economy continued to rely primarily on oil, coal, and natural gas deposits for its energy inputs, then depletion of fossil fuels would continue, albeit at a less frantic pace. A shift to natural gas use from the other fossil fuels would certainly help to reduce current emissions of carbon and sulfur into the atmosphere but with the consequence of accelerated depletion of remaining natural gas deposits. Hence, neither strategy by itself could deliver from fossil fuel dependence in a sustainable manner.

As Cassedy and Grossman [1990, 213 cited in England 1994] point out, however, many alternative energy technologies are currently being considered. These include photovoltaics, cogeneration, superconducting electric transmission, nuclear fusion, and both uranium and thorium breeder reactors, to name just a few. Hence, there are a significant number of alternative technological trajectories that might be pursued as we prepare to exit the age of fossil fuels.

The crucial theoretical point is that this set of alternative energy technologies does not yet exist in final form, simply awaiting optimal technical choices by rational and informed investors (England, 1994). Rather, each technical option is currently in the midst of a sequence of stages of technological evolution, ranging from basic scientific research through widespread commercial adoption.