Public health, climate, and economic impacts of desulfurizing jet fuel.

In jurisdictions including the US and the EU ground transportation and marine fuels have recently been required to contain lower concentrations of sulfur, which has resulted in reduced atmospheric SO(x) emissions. In contrast, the maximum sulfur content of aviation fuel has remained unchanged at 3000 ppm (although sulfur levels average 600 ppm in practice). We assess the costs and benefits of a potential ultra-low sulfur (15 ppm) jet fuel standard ("ULSJ"). We estimate that global implementation of ULSJ will cost US$1-4bn per year and prevent 900-4000 air quality-related premature mortalities per year. Radiative forcing associated with reduction in atmospheric sulfate, nitrate, and ammonium loading is estimated at +3.4 mW/m(2) (equivalent to about 1/10th of the warming due to CO(2) emissions from aviation) and ULSJ increases life cycle CO(2) emissions by approximately 2%. The public health benefits are dominated by the reduction in cruise SO(x) emissions, so a key uncertainty is the atmospheric modeling of vertical transport of pollution from cruise altitudes to the ground. Comparisons of modeled and measured vertical profiles of CO, PAN, O(3), and (7)Be indicate that this uncertainty is low relative to uncertainties regarding the value of statistical life and the toxicity of fine particulate matter.

Estimation of the shadow prices of pollutants with production/environment inefficiency taken into account: a nonparametric directional distance function approach.

This paper deals with the estimation of the shadow prices of pollutants with a nonparametric directional distance function approach, where the inefficiency involved in the production process is taken into account unlike the previous studies. The directional vector, which is critical to the estimation and subject to the criterion for an appropriate efficiency rule proposed here, is calculated by using the annual plans of power plants in terms of production and environment. In the empirical study for Korea's electric power industry during the period of 1990-1995, we find that the average shadow prices of sulfur oxides (SOx), nitrogen oxides (NOx), and total suspended particulates (TSP) are approximately 10% lower than those calculated under the assumption of full efficiency. The methodology we propose and the findings obtained in the empirical study allow us to undertake better decision-making over a broad range of environmental policy issues.