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Outline: ChE 150, February 26, 2009

Outline: ChE 150, February 26, 2009 Finish Tradable Permits (simulation) Estimating costs associated with pollution Pollution prevention: source reduction / recycling / treatment / disposal Initial MAC Name of Firm Emissions Curve Erie Hydroelectric 2000 4000-2*E

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Outline: ChE 150, February 26, 2009

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  1. Outline: ChE 150, February 26, 2009 • Finish Tradable Permits (simulation) • Estimating costs associated with pollution • Pollution prevention: • source reduction / recycling / treatment / disposal

  2. Initial MAC Name of Firm Emissions Curve Erie Hydroelectric 2000 4000-2*E Ontario Electric 2000 8000-4*E Volatile Venture Inc. 2000 10000-5*E Logarithmics 4000 4000-E U of R Power 4000 8000-2*E Coals-R-Us 4000 10000-2.5*E Classroom Game: SO2 Discharge Permits • Divide up in 6 groups - pick names. • Consider the following marginal abatement cost curves: Simulation adopted from A.W. Ando & D. T. J. Ramirez, Univ. Illinois at Urbana-Champaign

  3. Scenario 1: Command and Control Each firm is subject to a uniform standard of 1480 tons of SO2 per year. Your firm should calculate and report: 1) Abatement quantity (tons) 2) Cost imposed upon firm ($)

  4. Scenario 2: Tradable Discharge Permits, non-facilitated Each firm is provided permits worth 1480 tons of SO2 emission per year. Find other firms to buy or sell with. Report the following -number of permits purchased or sold -the total transaction cost or profit

  5. Scenario 3: Tradable Discharge Permits, facilitated Each firm is provided permits worth 1480 tons of SO2 emission per year. Your firm should work through the market facilitator to determine the market price of a permit, and the number of permits your firm will buy or sell.

  6. Tradable Discharge Permits: Summary • Approach to reduce pollution in a cost-effective fashion • Firms elect whether or not to abate pollution • Permit can be purchased (from other firms) to allow discharge • Number of permits is set by regulatory agency

  7. Who bought, who sold, and why?

  8. What is the role of the market facilitator? • What would happen without a facilitator? • Is there another forum for trading? • For programs in the US: • most trading is bilateral • regulatory body approves trades, distributes initial permits, and imposes fines

  9. What are the downside of permits? • Many unresolved problems • enforcement • initial allocation of permits • Is there another forum for trading? • For programs in the US: • most trading is bilateral • regulatory body approves trades, distributes initial permits, and imposes fines

  10. EPA: Acid Rain & Related Programs 2007 Progress Report

  11. EPA: Acid Rain & Related Programs 2007 Progress Report

  12. EPA: Acid Rain & Related Programs 2007 Progress Report

  13. EPA: Acid Rain & Related Programs 2007 Progress Report

  14. EPA: Acid Rain & Related Programs 2007 Progress Report

  15. What about greenhouse gases? • Meeting Kyoto Protocol Goals8% reduction in greenhouse gas emission from ’90 levels by 2012. (CO2, CH4, N2O, SF6) + fluorocarbons • This will adversely affect economic growth (~ 0.48% in 2010 alone) • 12,000 European Union firms begin CO2 emissions trading. • US legislation is “anticipated” by executives • US Policy • “signatory of Kyoto, not ratified • Climate Security Act of 2007: proposed US “cap & trade scheme”GH gas reduction (-70%) by 2050– killed in Senate by GOP • US legislation propelled at state level • Regional GHG initiative: (ME, NH, VT, NY, NJ, DE, MA, MY), allowances auctioned, Nov 2008 • Obama stance: proposed cap program that mimics Kyoto

  16. Cost-Benefit Analysis of Pollution MD: Marginal Damage– loss in well being due to extra pollution; WTP to avoid pollut. MAC MD $ MAC: Marginal Abatement Cost– cost of reducing depositions; “end-of-pipe” technology, e.g. flue gas desulphurization a P* is “optimal pollution” b pollution level p* CL:critical load Analysis relies on ability to estimate damages

  17. Estimating the cost of externalities associated with pollution. • Typical Problems • finding appropriate method • obtaining useful data • comparing results from different methods • interpreting the answer • Aim is to determine how human well-being is affected • Methods generally neglect • future generation well-being • animal well-being

  18. Taken from David Pearce, Keynote address: “Energy Policy and Externalities: the Life Cycle Analysis Approach Paris”, November 15-16 2001

  19. Quiz! (no credit…) For each of the following, write down a dollar amount that you would be willing to pay in taxes, today, on an individual basis: 1) to reduce the random homicide rate from 13 ppm to 8 ppm (this year) in your community. 2) to prevent a single random case of mercury poisoning within Monroe County 3) to repaint highway stripes, statistically saving 3800 lives per year across the US 4) to reduce 5 heart fatalities per year in Rochester by offer health and wellness education programs 5) To reduce your risk of death, this year, by exactly 0.001 % 6) To reduce your risk of death in your 60th year by exactly 0.001 % http://www.env-econ.net/2008/07/the-value-of-a.html

  20. How does one estimate health impactsassociated with pollution? • Intense pollution ultimately results in higher health costs and shorter lives. • How does one estimate costs of shorter lives? • Economic statisticians accomplish this through valuation of “statistical lives” and “statistical years” • Not surprisingly, survey results have large error margins, but provide a starting point. • Value of a statistical life: $ 6.7 million (6-2008)

  21. Allen, D.T., Shonnard, D. Green Engineering: Environmental Conscious Design of Chemical Processes, Prentice Hall 2002

  22. Allen, D.T., Shonnard, D. Green Engineering: Environmental Conscious Design of Chemical Processes, Prentice Hall 2002

  23. A risk assessment is used to estimate risks associated with an engineering option or scenario. What is the environmental impact of a new facility? What is the benefit gained from switching to a “green” solvent? Is a business decision consistent with institution’s (company’s)environmental philosophy? - assemble, interpret scientific data, statistics - be objective - get help (engineer, toxicologist, ecologist, chemist, …) - document everything, be thorough

  24. potential for harmto people or env. magnitude of timesusceptible (exposed) to hazard e.g. risks of lung cancer not exposedto asbestos exposed to asbestos non-smoker x smoker(fixed “pack years”) In order to estimate the cost of an externalitywe need to know something about risk. Risk = f (hazard, exposure) - usually expressed as a probability • new environmental risks will be • discovered! 8x 9x 92x

  25. ptot OR : add ‘em AND : multiply ‘em p1 p2 p3 p5 p4 A fault tree analysis is a simple, “back of the envelope” method to estimate risk probability. Failure pipelineper (km year) corrosion 3rd Party digs Other ptot= [ (p4+p5) x p3 ] + p1 + p2 Protectionsystem fails coatingdamage 3rd Party Environment Allen, D.T., Shonnard, D. Green Engineering: Environmental Conscious Design of Chemical Processes, Prentice Hall 2002

  26. fault tree analysis of collision into biker on right turn (on red) at traffic light p = 0.001 (1 min / 18 hours) p = 0.1 p = 0.01 crash intobiker on rt. turn p = 0.00011 bike present in target lane car fails to yieldto bike p = 0.11 driver does notsee bike on approach Driver only looksleft when turning right For 100 RTs (on reds) per day, 1 crash every 90 days!

  27. Pollution Prevention Priority: Reduce quantity of waste stream altogether: “any practice which reduces the amount of pollutant entering any waste stream or otherwise released into the environment” (EPA, 1991) Source Reduction Recycling Reuse of materials that would otherwise be disposed of. decreasingpreference Chemical, biological or physical processes to reduce or eliminate waste material (incineration) Treatment UltimateDisposal Pollution Prevention: Problems & Solutions, 1994

  28. Cost-minimization analysis of recycling MRP: Marginal Recycling Profit – arising from resale of used materials MRP = dp/dQR $ Q* Qu* MCD: Marginal Cost of Disposal – includes landfill disposal and waste incineration. 0 Q Q*: “optimal recycling” Qu* : where we would be withoutregulation MCD = dC/dQD Optimal recycling involves a marginal cost (no profit!) *Kirkwood, R. C., Longley, A. J. Clean Technology and the Environment. Chapman & Hall, Glasgow 1995

  29. Taxes can be used to repartition costs. Disposal taxes: Landfill tax (per ton), subsidy for incineration MRP = dp/dQR $ Q* Qu* 0 Q Product taxes: Per unit volume Virgin materials taxes: E.g. PET plastic in unformed state. MCD = dC/dQD Ideally, taxes would respond to curve shapes and level of societal recycling / reuse.

  30. Disposal is another form of pollution. What do we do with our waste? Landfill ~85% Other e.g. incineration, sea dumping physical, chemical treatment ~15% Inappropriate disposal of waste has negative social side-effects (externalities). External costs: noise, smell, unsightliness External benefit: recovery of methane or energy recovery (incineration)

  31. Pollution Prevention Priority: Reduce quantity of waste stream altogether: “any practice which reduces the amount of pollutant entering any waste stream or otherwise released into the environment” (EPA, 1991) Source Reduction Recycling Reuse of materials that would otherwise be disposed of. decreasingpreference Chemical, biological or physical processes to reduce or eliminate waste material (incineration) Treatment UltimateDisposal Pollution Prevention: Problems & Solutions, 1994

  32. Accounting for material flow is a key to pollutionprevention. - Represent process with discrete, interconnected control volumes - Perform material balances around control volumes On a per-unit-time basis: [mass in] – [mass out] = [mass accumulated] [moles in] – [moles out] + [moles generated] = [moles accumulated]

  33. Example: Strawberry Manufacture Strawberries contain about 15% solids, 85% water. To make strawberry jam, crushed strawberries and sugar are mixed in a 45:55 mass ratio. The mixture is heated to evaporate water until residue contains 1/3 water, by mass. Draw flowchart: calculate how many strawberries are needed to make a pound of jam. Fleder, Rousseau, Elemententary Principles of Chemical Processes; John Wiley & Sons, 1986

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