UN Division for Sustainable Development

Case Study Detail Record

Organization type:	Government

Name of Ministry/Agency:

Country:	Mexico

Initiative Title:	Externalities of Electricity Generation in Mexico

Internet links:	http://www.semarnat.gob.mx

Scope:

Status:	Completed

Timeframe:	Start: End:

Lead Institution:	Secretariat of Environment and Natural Resources (Secretaria del Medio Ambiente y Recursos Naturales SEMARNAT)

Stakeholders/Partners:	National Institute of Ecology National Meteorological Service CFE (Comisión Federal de Electricidad, Electricity Decentralized Public Entity of Federal Government) Secretariat of Health Economic Commission for Latin America and the Caribbean of United Nations Secretariat of Energy

Relevent issues:	- Policies and programmes to address air pollution from other major point sources

Objectives/Challenges:

Policy goal is to reduce air pollution in Mexico, especially in critical zones where power plants and refineries are major contributors to air emissions. To implement programmes and new standards, the valuation of economic externalities will be useful in the decision making process.

Lessons Learned:

Some information is difficult to obtain in developing countries and some international references are needed when no local data is available.

It is possible to estimate environmental damage of electricity generation to assist decision making in environmental regulation through the simplified approach. This approach provides results that are reasonably accurate and reliable as determined by comparison with results calculated by sophisticated environmental impact assessment.

The assessment and ranking of the risks will provide tools to reach consensus on a sustainable plan of action that integrates economic, environmental and social issues

Summary:

Mexico estimated environmental externalities of the biggest 13 thermal power plants in the order of 465 million dollars annually using the SIMPACTS Model of the IAEA. The external cost is in the order of 0.50 cents/kWh. Results demonstrate the importance of: 1) controlling emissions in critical zones; 2) Characterization of the power plants emissions and affected zones; 3) Pollution Dispersion Model; 4) Evaluation of health impacts; and 5) Economic valuation of the impacts.