External Costs of Three Power Plants in Indonesia

Juli 9, 2010 pukul 1:19 pm | Ditulis dalam Research Advisor | 1 Komentar

Widia Kusumawati, Using the QUERI Model-Airpacts Program to Assess the External Costs of Three Power Plants in Indonesia with Three Different Energy Sources, Graduate Thesis, Faculty of Business Administration & Economics, TU Bergakademie Freiberg, Germany, 2010.


The Indonesian government in an effort to meet the ever growing national demand for energy has initiated both short and long term projects involving the building of power plants that continue to use fossil fuels with more than 60% using coal as fuel. This thesis estimates the external costs (i.e. the negative impacts on human health) the QUERI Model-Airpacts Program in the SimPacts software of three Indonesian power plants fueled by coal, oil and gas respectively. The external costs are then added to the investment, operational and maintenance costs to assess feasibility. The results clearly show that the oil-fired power plant has the greatest external costs and is the least profitable with the coal-fired power plant not far behind. Eventhough the gas-fired power plant is the most feasible, its NO2 emissions were extremely high having the greatest short term mortality rates. These results show that power plants using renewable energy sources so that both national economic productivity and each individual’s quality of life can be maintained will be more competitive in the long term than those that use non-renewable energy sources.


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