How much more should oil, natural gas, and coal cost to account for social cost.

From prior post, social cost of CO2 = $39/metric ton (US Govt estimate) to $209/metric ton.

Oil and gas numbers taken from EPA calculations

Oil
CO2 from combusting one barrel of oil = 0.43 metric tons CO2/barrel
Additional amount oil should cost = 0.43($39 to $209) = $17 to $90/barrel more

Natural Gas
CO2 from combusting one therm of natural gas = 0.005302 metric tons CO2/therm
Additional amount natural gas should cost = 0.005302($39 to $209) = $0.21 to $1.11/therm
1 therm = 100,000 BTU = 99.98 cubic feet of natural gas = $21 to $111/cubic-feet more

Coal
Coal numbers taken from EIA. Coal depends on carbon content. At 78% carbon content 1 short ton (2,000 pounds) generates 5,720 pounds. 5,720 pounds = 2.59 metric tons.
Additional amount coal should cost = $2.59($39 to $209) = $101 to $541/short-ton more.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>