Social Cost Analysis for Electricity Generation Based on Sulfur Dioxide Emissions: Empirical Evidence from Iran

Many studies during the past 20 years have shown that air pollution causes serious damage to human health and the environment. The greenhouse effect and climate change have significant consequences in society. The electricity generated from fossil fuels contributes a considerable share to these environmental negative externalities. In this paper, we investigate the damaging impacts on human health resulting from an Iranian thermal power plant. Existing data on the relationship between human health degradation and ground concentrations of the analyzed pollutants have been used. Our findings indicate that the external cost of sulfur dioxide emissions is not negligible and should lead the energy authorities to consider emissions taxation.